Estee Lauder opens dedicated travel retail distribution center

By

Jennifer Braun

Published
Jun 8, 2022

The Estée Lauder Companies (ELC) announced on Tuesday the opening of a new distribution center in Galgenen, Switzerland to support its global travel retail business. 

The new 300,000-square-foot facility is equipped to support the continued growth of travel retail, which is one of the company’s highest growth channels and touches over 3 billion consumers a year.

The centre expands upon the company’s existing distribution footprint in Switzerland and will enable ELC to continue to service traveling consumers around the world.

“Travel retail continues to demonstrate its resilience, driving tremendous growth over the last decade for The Estée Lauder Companies. We remain extremely confident in the channel for the long-term, especially as travel restrictions ease globally and people start traveling again,” said Fabrizio Freda, president and chief executive officer.

“The opening of our new Galgenen distribution center will enable us to adapt even better to ever-changing retail needs and growth opportunities for the channel, and expand upon our existing distribution presence in Switzerland.”

Travel retail, which spans the world of duty-free environments including airports, downtown locations, airlines, cruises and border shops, accounts for 28% of ELC’s sales in fiscal year 2021. 

“As we mark the 30th anniversary of The Estée Lauder Companies’ travel retail business, we are incredibly proud of our track record of exciting and delighting travelers all over the world with our exclusive products and high-touch experiences for the Travel retail industry and having made the channel an integral engine of growth for ELC,” said Israel Assa, global president, travel retail worldwide.  

“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.”

The Estée Lauder Companies opened its affiliate office in Switzerland more than 55 years ago and its first manufacturing plant more than 45 years ago. The company currently has four distribution centers in Switzerland and is the fifth largest employer in the canton of Schwyz. 

The new facility in Galgenen, is expected to double its total output capacity and will further advance the sustainability of ELC’s global manufacturing and distribution network, as the building’s design is based on the newest standards to reduce energy and water consumption.