Duty Free Holdings targets US$500 million turnover as private jet retail business soars

USA. Since joining Duty Free Holdings (DFH) as CEO in 2024, James Mullaney has been focused on accelerating the travel retailer and distributor’s expansion efforts across the USA, Caribbean and Latin America.

The core task is building the footprint of the company’s Executive Retail Shop brand at US private jet terminals, while extending the reach of its La Boutique stores at small to mid-sized commercial airports and consolidating border shop operations in Texas and southern California.

DFH – which remains controlled by Founder Philippe Dray – has set itself some ambitious sales targets. Mullaney, the former President and Chief Financial Officer of fashion business L&M Direct and ex-CEO of Furla USA, says he’s excited about trying to hit them.

“We had around US$200 million in turnover in 2024, we’re aiming for US$300 million in 2025 and we have our eyes set on US$500 million by 2027,” says Mullaney.

Growing on the US-Mexico border is one element in realising that vision, while another central ambition is to extend the La Boutique brand, which opened last year as a joint venture at John Wayne Airport in Orange County, California.

But the fastest-growing sector for DFH is private jet terminals or fixed-base operator (FBO) locations. The company serves these with a variety of store models, from large to small, with goods ordered either at the airport or online with fulfilment via warehousing situated in the nearby region.

Mullaney says: “Private jet airports are expanding in leaps and bounds. What was once a facility for people who owned their own jets is becoming more accessible to the upper middle classes through leasing.” With so many flights from private terminals in the USA to the Caribbean in particular, the duty-free opportunity has become a sizeable one.

DFH has developed several concepts for private jet airports. The Valise concept, for locations with limited space, represents a mobile showcase that can house selected brands. A modular concept is a variation of this that can be developed depending on the footprint.

Then there is a full build-out concept under the Executive Retail Shop brand that involves a store plus ‘white glove’ concierge-style service with delivery directly to the plane.

“This full build-out where it’s possible brings the designer look and luxury feel to the airport, and it is that service many customers want and expect,” says Mullaney. “But whatever the concept, we have the ability to adapt to the space and to offer the customer what they need right then and there, either via the store itself or the online offer, delivered from the distribution centre.”

Sound logistics represents the backbone of the business. DFH is expanding warehouse space both in Miami and San Diego to accommodate present and future needs.

“We have to be able to deliver within 45 minutes to an hour, so logistics are everything,” says Mullaney. “We can only do this because we are building out the logistics base and creating different distribution centres that allow us to deliver.”

He adds: “Logistics will also be the key to our further expansion plans in Latin America, where so far we have a small wholesale business. We have two potential border store locations in Rivera on the Uruguay-Brazil border. To move ahead we have to be able to service that business with great logistics.”

For now, the USA represents the cornerstone of the business. There, alongside southern California serviced out of San Diego, DFH says it has much of southern Florida locked down with contracts at multiple jet terminals.

Next steps include building up click & collect capabilities – the company has just hired a new Chief Technology Officer – alongside sales teams.

DFH is also building closer relationships with brand owners, who are drawn by the improved private jet retail showcases and potential transaction values from the audience of high net worth individuals.

“The major brands have a great showcase at commercial airports but at these terminals, you have much the same concept but a totally different level of customer, one that the luxury brands want to engage with,” notes Mullaney.

Spirits & wines represent an important segment of the business, with fragrances and skincare “taking off” as younger demographics join the FBO passenger base.

“It depends on the FBO, but broadly we see very high transaction levels even if that is from not many units sold. While you might have transaction values of US$50 to US$100 at a commercial airport, you are seeing multiples of that in the FBOs, in the upper hundreds to the thousands.

“You might sell several cases of Champagne or Cognac or Scotch to a group leaving on a trip to the Caribbean for a weekend for example.

“We are trying to be nimble in what we’re carrying, and are doing a lot of data analysis on what works best within the FBO and appeals to that particular customer. This concept is not brand new but there will be many more lessons as we continue to grow.”

Reflecting on a whirlwind six months in the role, and on the priorities to enable the next stage of growth, Mullaney says: “If I’ve learned one big lesson it is that being able to deliver to the right place at the right time is the number one way to maximise the sales. It sounds simple but it’s true, and that is the key to success from our FBOs to our border stores.”

*This article first appeared in The Moodie Davitt March Magazine; click here to access a link to that edition (go to page 61).