MIDDLE EAST: IRAQ DUTY FREE
“The temporary store opened on August 10 and will continue until the end of November. The new renovated outlet will open on 1 December.” Providing further details of
the Nineveh terminal departures renovation among others, Jabbour adds: “We are renovating the store from scratch. It will have a new look. There will be generic merchandising as well as personalised branding from suppliers. “In the second quarter of next
year we will also begin renovating the 508sq m departures shop in the Babylon terminal, home to various other international airlines.” Away from Baghdad, IDF is
working on projects in Basra and at three other unnamed airports. “The one main activity we have just finalised is the arrivals shop in Basra,” says Jabbour. “We are closing the existing 15sq
m down and opening a new 36sq m shop in a better location with a bigger space and better environment for duty free. “We also have three new airports
coming up throughout 2018 and the beginning of 2019, but will not reveal the names until all details have been finalised.” The overall $2m renovation is
expected to be completed by the end of 2019, but this does not just encompass the duty free facilities at the various airports. Jabbour explains: “We offer a renovation of the airport facilities including the seating areas for customers and travellers. “New trolleys are also provided
and buses are offered for employees to travel to and from their cars.”
Targeting ‘big names’ Regarding the in-store retail assortment, the number one category is perfume, comprising 49% of total sales. “For the beauty category, we are offering the big perfumes brands such as Christian Dior, Carolina Herrera, Paco Rabanne, Bulgari and Hermès. “As for cosmetics, we have the
likes of Revlon, Rimmel and Benefit and aiming to house the big names.” The second largest category is confectionery, comprising 38% or
OCTOBER 2018
Iraq Duty Free can now sell liquor in its stores following approval by the Iraqi government after a 13-year absence.
TRBUSINESS 85
39% of total sales followed by liquor (around 29%) and tobacco (15% or 16%). Jabbour, who cites Iraqi travellers
as the top-spenders followed by Jordanians and a ‘mix of nationalities’ says the layout of Iraqi airports represents a significant internal challenge. He explains: “The existing airports have an old look and there has been no renovations. “On entering these airports, you
see an old image with facilities not to the standard of other international airports. The Civil Aviation Authority and Ministry of Transportation are working on making improvements. “Offering an upgraded look and broader category mix is our forte.”
Pushing promotions Externally, there has been a mixture of challenges as alluded to previously, but a willingness on the part of suppliers to engage more on the promotions front is a welcome boost. “Since the end of 2016, suppliers have been more aggressive and paid more attention to Iraq Duty Free and the turnover being generated. “They have certainly been more
proactive in terms of podium activities in-store, incentives for staff and promotional items such as gifts with purchase on special occasions such as the end of Ramadan.” Renovations and new openings
aside, the plan is for IDF to reach a level where it can compete with other players in the region and emphasise its image as well as its
Perfumes is the number one category for Iraq Duty Free, accounting for 49% of total sales.
“The re-introduction of alcohol makes a massive difference and we are confident of reaching our 2018 sales target of $9m. Last year we generated $7m.”
Fouad A Jabbour, Iraq Duty Free
product and category mix to satisfy consumer needs. “When you see the look of the new
renovated arrivals area and take into account the plans we have for the departures stores in Baghdad, it will be clear why we can compete with others in the region,” adds Jabbour. Missing items from certain
international houses may have held IDF back to an extent, but the various renovations should help address this, he adds: “We are now introducing the likes of Lacoste, Samsonite and ST Dupont, which will have their own corners in the new renovated stores.” «
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