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NEWS ROUND-UP Arrivals sales double for FaSoLa Shops
As previously reported, airport duty free arrival shops in Japan are permitted to sell imported products only. After stocking liquor and tobacco
products initially, FaSoLa introduced a selection of perfumes in all its arrival shops at the end of 2018, in time for Christmas. Skincare products are still not on sale in the
arrival shops, but are under consideration. “We created duty free arrival shops
Rising sales in FaSoLa’s new duty free arrival shops are lifting the operator’s total revenue, with tobacco now firmly established as a dominant category. FaSoLa operates five duty free arrival
shops in total; two in T1, two in T2 while the fifth arrival shop is in T3. “Arrival sales have been growing since
they opened,” insists Go Uemura, Director of the Merchandising and Logistics Department, FaSoLa Shops Perfumes & Cosmetics and Product Division II. “The amount has doubled and is still growing. “It’s mainly Japanese customers buying,
with tobacco being the most popular category. We believe that Japanese men are the arrival shops’ biggest customers.”
to provide a new service to customers; our arrival shops all have similar products,” explains Uemura. However, the arrivals product mix does differ from its departure shops. “Tobacco constitutes 90% of arrival sales
and Iqos is the No 1 brand,” he adds. “The rest of our arrival sales are mostly
liquor. We only offer imported brands. “Our arrival shops are a small, but growing
business. We are trying to maximise our arrivals business.” As mentioned, e-cigarettes are a key
component of the offer and are currently driving tobacco sales growth in all of FaSoLa’s stores. “There is strong demand for Iqos cigarettes from Japanese and Chinese passengers,” adds Uemura.
Entas lobbies for sale of tobacco in arrivals
Entas Duty Free is relishing the possibility of being able to sell tobacco products at its Seoul Incheon Airport Terminal 2 arrivals store from next year. (The store’s inauguration – bottom right – took place in May this year.) Since securing one of the two inaugural
arrivals duty free contracts at the airport in March – SM Duty Free secured the two- store Terminal 1 contract – Entas has been in regular dialogue with Incheon International Airport Corporation (IIAC) and the South Korean government (Ministry of Economy and Finance). The topic of discussion has been the
possibility of eventually being able to sell tobacco in its 326sq m arrivals shop. Currently, the store, which opened on
31 May and is in the midst of a trial period, retails all major product categories except tobacco under a $600 allowance ceiling. TRBusiness can confirm the store is
underperforming, from a sales perspective, but the inclusion of tobacco, widely regarded as a key footfall driver in DF&TR environments, would surely boost sales within other product segments.
Gebr. Heinemann and Cologne Airport turn 50
Last month, leading global travel retailer, Gebr. Heinemann and Cologne Bonn Airport celebrated the 50th anniversary of their partnership, first formed in 1969, along with the opening of the retailer’s first airport store. “It all began with a sort of small kiosk
with a service counter,” said Heinemann of its first duty free shop, which it opened 50 years ago at Cologne Bonn Airport. This formed a solid basis for a forward-looking partnership, says the company. The Hamburg family business is still
the retail concessionaire at Cologne Bonn Airport today, now with five shops, over 100 employees and a total sales area of around 1,800sq m. As reported, Gebr. Heinemann recorded
a resilient financial performance in 2018 with Group turnover up 11.4% to €4.6bn ($5.4bn) as the family-owned company passed the leadership baton to its fifth generation. Group-wide retail sales grew by an
even more impressive 14.5% to total €3.6bn ($4.2bn) with wholesale activities up 0.2% to €900m. “We are very proud of our longstanding
and successful partnership with Cologne Bonn Airport,” said Claus Heinemann, co- owner of Gebr. Heinemann. [For a comprehensive report and analysis of
Gebr. Heinemann’s business activities over the last 18 months, refer to p47 of the Top 10 International Operators report.]
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