MIDDLE EAST & AFRICA: LAYAM SAKAL


Layam targets overseas expansion to take business to the next level


Fresh from winning a new souvenir concession at Tel Aviv Ben Gurion International Airport Terminal 3, Layam Sakal is now seeking that all-important big break, which will give it the opportunity to expand overseas. Andrew Pentol seeks the views of Layam CEO Shay Tangi.


“We are familiar with this product segment,” remarks Tangi. The location of the new Terminal


3 souvenir store, which serves the majority of arriving and departing passengers, is certainly conducive to strong sales. “This shop is dedicated to souvenirs and located in the heart of the airport where visitor numbers are high.” Tangi, who emphasises the need


Above: In addition to its Tel Aviv Ben Gurion operations, Layam Sakal runs a store in the Haifa seaport.


I


f Israeli travel retailer Layam Sakal has its way, the capture of the 100sq m souvenir


concession at Tel Aviv Ben Gurion International Airport (TLV) Terminal 3 will be just the beginning of a rapid growth phase. TRBusiness first revealed in April that


Layam wanted to grow the business outside Israel through mergers and acquisitions and that the company was in contact with several duty free companies in Europe and Africa. Layam is aiming to complete the


purchase of one retailer by the end of the year. But there is nothing to stop it pursuing other opportunities while considering its options. The new six-year TLV souvenir


contract, which includes a 136sq m warehouse located next to the store, begins on 1 November 2019. A three-week renovation will then take place. Revenue during the contract period is expected to amount to


“We are very excited to win this tender and are seeking new opportunities all the time even outside Israel.”


Shay Tangi, CEO, Layam


56 TRBUSINESS ILS160m ($46m).


Business to evolve Established in 1936, Layam already runs a 450sq m toy store, 100sq m children’s fashion shop in TLV Terminal 3. It also operates a 70sq m toy shop in Terminal 1. The new concession is an excellent opportunity to raise its profile at the airport and grow business simultaneously. Aside Tel Aviv Ben Gurion, Layam


runs a diplomatic duty free shop in Tel Aviv and liquor & tobacco and perfume & cosmetic shops in the passenger terminals at Ashdod and Haifa seaports. Shay Tangi, CEO Layam, tells


TRBusiness: “We are very excited to win this [souvenir] tender and are seeking new opportunities all the time even outside Israel. Negotiations are taking place with a couple of duty free companies with a view to doing business.” He adds: “We are fulfilling our


growth strategy and when this tender opportunity came up, we went for it full throttle.” Layam currently operates souvenir


sections in its Ashdod and Haifa seaport duty free stores. This will stand it in good stead when the new TLV store opens later this year.


The Israeli travel retailer is present in Terminal 1 and Terminal 3 at Tel Aviv Ben Gurion International Airport.


OCTOBER 2019


to renovate the existing store to improve the customer experience, says new lines of inventory will be added to the mix. “We will definitely change some


of the suppliers and keep some of the old items which were sold by the previous operator. It is going to be an evolution not a revolution.” The Layam children’s and toy


stores in Terminal 3 and Terminal 1, along with the seaport duty free and diplomatic shops are all performing strongly, according to Tangi. “The toy shops are exceeding


expectations and the kids fashion store is also doing okay. We will definitely improve on last year’s performance.” With no major new international


airports expected to open in Israel for the foreseeable future, overseas expansion is the only way forward. “If we want to really grow the


business, we must do it by spending money and venturing outside Israel,” says Tangi. «


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