Joint CEOs At World’s Second-Biggest Airport Retailer

France’s Lagardère Travel Retail (LTR), the world’s second biggest airport retailer after Avolta, is creating a joint-CEO leadership structure. Effective, July 1, the current deputy CEO will step up to run the organization alongside existing long-time leader Dag Rasmussen, signalling a succession process and his possible departure or shift to full-time chairmanship of the retailer.

The move has come on the recommendation of Rasmussen—almost 14 years at the helm—and Arnaud Lagardère, the chairman and CEO of the almost $10 billion turnover (€8.9 billion*) media-to-retail Lagardère Group whose ultimate parent is Louis Hachette Group, which has a stake of just over 66%.

LTR is the bigger of two divisions by turnover at Lagardère Group, contributing revenue of $6.3 billion versus $3.1 billion from Lagardère Publishing (FY2024 data). However, in terms of operating performance the latter business does better, delivering almost 60% of Lagardère Group’s Ebitda, the rest coming from LTR.

This year LTR has seen major developments in South America and South Africa, and keeping control of further expansion will be a priority. In his new role, Chevalier will be responsible for overseeing worldwide operations in 51 countries, with the company’s executive committee reporting directly to him. He has been with LTR for almost 20 years, joining in 2006 as vice president of strategy and development, and has been consistently promoted upwards since then.

According to Arnaud Lagardère, Chevalier was “a key architect” of the structural integration of the company’s three business lines—travel essentials, duty-free and fashion, and dining—considered to be vital in implementing LTR’s long-term strategy, and in winning new business.

Chevalier is “uniquely qualified”

LTR’s chairman and CEO, Rasmussen, said in a statement: “Frédéric’s in-depth knowledge of our business and his strong leadership make him uniquely qualified to lead the next phase of our journey. He embodies our commitment to operational excellence and to our founding principles. I know that in his new role he will drive our strategy with clarity, ambition and a deep sense of responsibility toward our teams, our partners, and our shareholders.”

Chevalier, commented: “While staying consistent in our strategy, we must remain agile, responsive and willing to adapt to change. Our direction is clear: to continue creating value for our partners, and memorable retail and dining experiences for travelers.”

This year at LTR, operations and frontline staff will see renewed focus. Earlier in June, LTR decided to accelerate its digital plans with the international roll-out of TeamUp, an all-in-one app designed to enhance operational activity and facilitate communication between frontline teams.

Developed in partnership with Yoobic, founded in 2014 by three brothers, Fabrice, Avi and Gilles Haïat, the TeamUp solution was initially rolled out in Switzerland and has now been introduced to LTR’s teams in Britain, Belgium, Italy and North America, connecting more than 2,800 employees.

Charlotte Delmas, LTR’s chief operational performance officer and regional COO for Europe, said: “TeamUp gives our field staff a voice, connects them to the business, and helps them execute better every day. By modernizing and digitizing communication with our store teams, we make working at Lagardère Travel Retail more attractive and engaging—essential in today’s challenging recruitment landscape.”

Stepping up operations

The joint-CEO decision indicates an extended handover, with Rasmussen possibly stepping down in the coming months. LTR did not comment on this when asked, or say whether a new deputy CEO would be appointed. It might also be a question of the resources needed, both to drive forward business development and beef up operations, and also increase profitability.

Over the past decade, LTR’s revenue has almost tripled, though some of this has been through acquisition. Meanwhile, Ebit as a percentage of revenue has gone from 2.9% in 2015 to 5.2% in 2024. While moving in the right direction, this is below Avolta’s EBIT margin of approximately 6.7% last year.

In the last year, LTR has strengthened its regional footprints; in Europe alone it has won or retained key contracts in Frankfurt, Hamburg, Belfast, and Nice, and was selected as a joint venture partner to operate duty-free at Amsterdam’s Schiphol Airport, with Gebr.Heinemann departing in April. This momentum, the company says, reflects the strength of the company’s development strategy and effective operational execution—and it looks like its succession process will ensure this continues.

* All US:€ conversions are the average rates in 2024.