Estée Lauder doubles down on travel market with new distribution centre

By Alessandro Carrara | Published: 13-Jun-2022

The new 300,000sqft facility in Galagen will support Estée Lauder’s profitable global travel retail business

Estée Lauder Companies (ELC) has opened a new Switzerland-based distribution centre to support the growth of its global travel retail business.

Travel retail accounted for 28% of ELC’s sales in 2021, and remains one of the company’s highest growth channels.

This covers total beauty category sales across skin care, make-up, fragrance and hair care in duty-free locations such as airports, airlines, cruises and border shops.

The new 300,000sqft facility in Galagen expands upon the company’s existing distribution operations in Switzerland.

Fabrizio Freda, ELC's President and Chief Executive Officer, Israel Assa, Global President of travel retail worldwide and Roberto Canevari, Executive Vice President of the business’ global supply chain, hosted the opening ceremony.

“Travel Retail continues to demonstrate its resilience, driving tremendous growth over the last decade for The Estée Lauder Companies,” said Freda.

“We remain extremely confident in the channel for the long-term, especially as travel restrictions ease globally and people start travelling again.”

The new facility supports ELC’s sustainability goals for its global manufacturing and distribution network.

The building has been designed to reduce energy and water consumption, and features LED lighting, an energy-efficient HVAC system and solar panels.

A comprehensive waste management system has also been implemented to separate out recyclables.

“As we look to the future, this investment here at Galgenen is a testament to our belief in the long-term growth potential of this channel and that by investing in these capabilities and with our retailers, we can capture the next generation of growth in this dynamic, prestige marketplace,” said Israel Assa, Global President, Travel Retail Worldwide.

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