{"id":10816,"date":"2026-04-15T07:01:00","date_gmt":"2026-04-15T03:01:00","guid":{"rendered":"https:\/\/omanet.om\/en\/news\/business\/war-impacting-luxury-airport-shopping\/"},"modified":"2026-04-16T08:17:29","modified_gmt":"2026-04-16T04:17:29","slug":"war-impacting-luxury-airport-shopping","status":"publish","type":"post","link":"https:\/\/omanet.om\/en\/news\/business\/war-impacting-luxury-airport-shopping\/","title":{"rendered":"Impact of Ongoing Conflict on Airport Retail: How Luxury Brands Are Affected and What It Means for Investors"},"content":{"rendered":"<style>\r\n@keyframes hitv3sog-fadein{from{opacity:0;transform:translateY(14px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitv3sog-slideup{from{opacity:0;transform:translateY(20px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitv3sog-pulse{0%,100%{box-shadow:0 0 14px #dc262688}50%{box-shadow:0 0 32px #dc2626,0 0 60px #dc262655}}\r\n@keyframes hitv3sog-shimmer{0%,100%{opacity:0.3;transform:scaleX(0.4)}50%{opacity:1;transform:scaleX(1)}}\r\n@keyframes hitv3sog-glow{0%,100%{opacity:0.6}50%{opacity:1}}\r\n@keyframes hitv3sog-badge{from{opacity:0;transform:scale(0.8)}to{opacity:1;transform:scale(1)}}\r\n<\/style><style>\r\n.hitv3sogw{container-type:inline-size;width:100%;max-width:970px;margin:0 auto;box-sizing:border-box}\r\n.hitv3soga{display:flex;flex-direction:row;align-items:center;justify-content:space-between;width:100%;box-sizing:border-box;text-decoration:none;color:#fff;font-family:-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,system-ui,sans-serif;position:relative;overflow:hidden;cursor:pointer;background:linear-gradient(135deg,#111118 0%,#080808 100%);border:1.5px solid rgba(255,255,255,0.08);border-radius:14px;gap:20px;padding:20px 40px;transition:border-color .2s}\r\n.hitv3soga:hover{border-color:#dc262688}\r\n.hitv3sogg1{position:absolute;inset:0;background:radial-gradient(ellipse at 50% 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solid rgba(255,255,255,0.18);backdrop-filter:blur(8px);-webkit-backdrop-filter:blur(8px);border-radius:20px;padding:3px 10px 3px 7px;margin-bottom:clamp(5px,0.6vw,9px);animation:hitv3sog-badge 0.5s ease both;\"><span style=\"display:inline-block;width:6px;height:6px;border-radius:50%;background:#dc2626;flex-shrink:0;\"><\/span><span style=\"font-size:clamp(8px,0.9vw,10px);font-weight:700;letter-spacing:0.07em;color:rgba(255,255,255,0.88);text-transform:uppercase;white-space:nowrap;\">EXCLUSIVE OMAN OFFER<\/span><\/div>\r\n    <div class=\"hitv3sogh\" style=\"animation:hitv3sog-slideup 0.7s ease both;animation-delay:0.15s;\">Websites For <span style=\"color:#dc2626;\">Omani Businesses.<\/span><\/div>\r\n    <div class=\"hitv3sogs\" style=\"animation:hitv3sog-slideup 0.7s ease both;animation-delay:0.3s;\">Empower your brand with custom digital solutions designed for high conversion and market dominance.<\/div>\r\n    <div class=\"hitv3sogbl\"><div class=\"hitv3sogbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Responsive designs built for growth<\/span><\/div><div class=\"hitv3sogbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Fast loading with smart automation<\/span><\/div><\/div>\r\n  <\/div>\r\n  \r\n  <div class=\"hitv3sogct\">\r\n    <button class=\"hitv3sogbtn\" style=\"animation:hitv3sog-pulse 2.5s ease-in-out infinite;animation-delay:1s;\">Build Your Free Website <span style=\"opacity:.9;\">\u2192<\/span><\/button>\r\n    <div class=\"hitv3sogbr\">hit.land<\/div>\r\n  <\/div>\r\n<\/a>\r\n<\/div>\n<p>Duty-free stores, from DFS to Avolta, are experiencing significant challenges as the ongoing conflict in the Middle East disrupts travel and airport operations in the region. This disruption, now in its sixth week, poses a serious threat to luxury and beauty brands that rely heavily on airport shopping, particularly in Gulf hubs, to compensate for declining demand in markets like China and Europe. Even temporary airport closures could significantly impact quarterly profits for these companies.<\/p>\n<p>Analysts warn that a prolonged decline in air traffic to and from the Middle East could further strain the travel retail sector, which is still recovering from the impacts of the COVID-19 pandemic. This situation is affecting companies such as LVMH\u2019s DFS and impacting prestige beauty and luxury brands, including Est\u00e9e Lauder, Puig, and L&#8217;Or\u00e9al.<\/p>\n<p>International flights to and from the Middle East saw a drastic decline in early March. While some airlines in the United Arab Emirates are beginning to resume services, overall flight levels remain substantially below normal standards. According to Cirium data, flight cancellations from the region (excluding Turkey) sharply decreased from 65% on March 3 to 13% by March 27. However, the total number of flights being scheduled has also diminished.<\/p>\n<p>LVMH\u2019s Chief Financial Officer, Cecile Cabanis, indicated that DFS&#8217;s performance is costing \u201ctwo percentage points of growth\u201d for their selective retailing division, which includes the beauty brand Sephora. The conflict has negatively affected group sales by at least 1% in the latest quarter due to reduced spending in the Gulf region, with Cabanis noting that demand continues to be significantly low.<\/p>\n<p>The $74 billion travel retail industry faces inventory adjustments and temporary store closures due to these challenges. Analysts anticipate that a return to normal for luxury retail in airports may take time. For instance, Dubai International Airport has reduced its operations after a drone attack prompted temporary closure, while Kuwait International Airport remains closed due to ongoing drone strikes, affecting sales for businesses like Avolta and Boots.<\/p>\n<p>CFO Yves Gerster of Avolta reported they are reallocating inventory from slower-moving locations to those with higher foot traffic. Despite partial airport closures, certain shops at Dubai Airport saw increased sales in food and other items for stranded travelers.<\/p>\n<p>Kering CFO Armelle Poulou shared that travel retail has slightly decreased compared to the previous year, though local customer demand has shown resilience. The conflict resulted in a 3% decline in Kering&#8217;s overall sales in March, translating to a 1% dip for the quarter, with Gucci particularly affected.<\/p>\n<p>Investors are closely monitoring Est\u00e9e Lauder&#8217;s quarterly results due on May 1, especially as the company considers a $40 billion acquisition of Spanish competitor Puig, which generates approximately 10% of its revenue from travel retail and is thus vulnerable to fluctuations in airport shopping and international travel.<\/p>\n<p>L&#8217;Or\u00e9al, which reportedly attributed less than 4% of its $44 billion in 2025 sales to its travel retail sector in Asia, is set to release quarterly results on April 22. While the company doesn\u2019t disclose total travel-retail sales, analysts indicate that Asia represents a significant portion. Both Est\u00e9e Lauder and L&#8217;Or\u00e9al declined to comment, and Puig was unavailable for immediate response.<\/p>\n<p><style>\r\n@keyframes hitl8gak-fadein{from{opacity:0;transform:translateY(14px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitl8gak-slideup{from{opacity:0;transform:translateY(20px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitl8gak-pulse{0%,100%{box-shadow:0 0 14px #dc262688}50%{box-shadow:0 0 32px #dc2626,0 0 60px #dc262655}}\r\n@keyframes hitl8gak-shimmer{0%,100%{opacity:0.3;transform:scaleX(0.4)}50%{opacity:1;transform:scaleX(1)}}\r\n@keyframes hitl8gak-glow{0%,100%{opacity:0.6}50%{opacity:1}}\r\n@keyframes hitl8gak-badge{from{opacity:0;transform:scale(0.8)}to{opacity:1;transform:scale(1)}}\r\n<\/style><style>\r\n.hitl8gakw{container-type:inline-size;width:100%;max-width:970px;margin:0 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solid rgba(255,255,255,0.18);backdrop-filter:blur(8px);-webkit-backdrop-filter:blur(8px);border-radius:20px;padding:3px 10px 3px 7px;margin-bottom:clamp(5px,0.6vw,9px);animation:hitl8gak-badge 0.5s ease both;\"><span style=\"display:inline-block;width:6px;height:6px;border-radius:50%;background:#dc2626;flex-shrink:0;\"><\/span><span style=\"font-size:clamp(8px,0.9vw,10px);font-weight:700;letter-spacing:0.07em;color:rgba(255,255,255,0.88);text-transform:uppercase;white-space:nowrap;\">EXCLUSIVE OFFER<\/span><\/div>\r\n    <div class=\"hitl8gakh\" style=\"animation:hitl8gak-slideup 0.7s ease both;animation-delay:0.15s;\">Your Website <span style=\"color:#dc2626;\">Should Sell.<\/span><\/div>\r\n    <div class=\"hitl8gaks\" style=\"animation:hitl8gak-slideup 0.7s ease both;animation-delay:0.3s;\">Custom-built websites with smart automation & AI-powered features.<\/div>\r\n    <div class=\"hitl8gakbl\"><div class=\"hitl8gakbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>SEO-optimized & lightning fast<\/span><\/div><div class=\"hitl8gakbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Smart features built for your business<\/span><\/div><\/div>\r\n  <\/div>\r\n  \r\n  <div class=\"hitl8gakct\">\r\n    <button class=\"hitl8gakbtn\" style=\"animation:hitl8gak-pulse 2.5s ease-in-out infinite;animation-delay:1s;\">Get Free Consultation <span style=\"opacity:.9;\">\u2192<\/span><\/button>\r\n    <div class=\"hitl8gakbr\">hit.land<\/div>\r\n  <\/div>\r\n<\/a>\r\n<\/div><br \/>\n<\/p>\n<p><strong>Special Analysis by Omanet | Navigate Oman&#8217;s Market<\/strong><\/p>\n<p>The ongoing conflict in the Middle East poses significant <strong>risks for luxury and beauty businesses<\/strong>, particularly those reliant on airport shopping as travel restrictions threaten <strong>profit margins<\/strong>. With air traffic and airport operations severely disrupted, intelligent investors should consider <strong>shifting focus<\/strong> toward <strong>local consumer markets<\/strong> and adapting strategies to leverage emerging opportunities as the travel-retail sector navigates this instability. Now is the time for entrepreneurs to <strong>diversify revenue streams<\/strong> and innovate within resilient channels, minimizing vulnerability to geopolitical challenges.<\/p>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Duty-free stores are feeling the squeeze as Middle East conflicts disrupt air travel, impacting luxury brands reliant on airport shopping. With foot traffic down and significant sales losses reported by LVMH and Kering, the travel-retail industry faces ongoing challenges.<\/p>\n","protected":false},"author":12,"featured_media":10817,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[114],"tags":[4419,4418,4003],"class_list":["post-10816","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-airport-shopping","tag-luxury-retail","tag-middle-east-conflict"],"jetpack_featured_media_url":"https:\/\/omanet.om\/wp-content\/uploads\/2026\/04\/3353175.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/10816","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/comments?post=10816"}],"version-history":[{"count":1,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/10816\/revisions"}],"predecessor-version":[{"id":10818,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/10816\/revisions\/10818"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/media\/10817"}],"wp:attachment":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/media?parent=10816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/categories?post=10816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/tags?post=10816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}