Estée Lauder opens new distribution centre to strengthen travel retail

The Estée Lauder Companies is opening a new distribution centre in Galgenen, Switzerland to accommodate the future growth of its global travel retail business.

Travel retail, which covers the world of duty-free environments, is one of the company’s highest growth channels and touches over three billion consumers a year. The sector accounted for 28% of ELC's sales in 2021.

The new 300,000 square foot facility expands upon ELC's existing distribution footprint in Switzerland and will help the company improve the delivery of its prestige beauty products and high-touch services to travelling consumers around the world.

The centre will also help Estée Lauder to champion sustainability. The building’s design is based on the newest standards to reduce energy and water consumption. This includes total LED lighting, an energy-efficient HVAC system, solar panels and a waste management system.

Fabrizio Freda, President & CEO at The Estée Lauder Companies, said: “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. The opening of our new Galgenen distribution centre 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.”