EUROPE: REGSTAER
long time for the decision to be made and as a member of the Eurasian Duty Free Association we were actively pushing for it. “As soon as the Code came into
effect, we transformed the store into a duty free format within one day.” As mentioned, while the eventual
implementation of Russian arrivals stores came as no surprise to RegStaer, the same can’t be said for passengers. This is because it was a completely new concept for Russia and there was minimal coverage in the mass media. As a result, RegStaer had to pull out all the stops to ramp up sales in the first few days of trading. Sagiev says: “Gradually,
passengers are becoming more aware of the opportunity to shop in duty free stores on arrival in Russia and sales are starting to grow on a monthly basis. “We have undertaken a series
of actions to inform passengers departing from Vnukovo and Platov Airports. “Information about duty free
stores on arrival is posted on the company website, on social media, in the Aeroexpress magazine (which appears on the trains carrying passengers to the main Moscow airports), on the screens in the airports, in our departure stores and even on the back of receipts handed to passengers shopping in departures. “This all helps raise passenger
awareness and to drive up sales.” Pressed by TRBusiness on
the
potential of arrivals duty free in Russia, Sagiev enthuses: “We believe the absolute potential of duty free on arrival should be the same as on departure, subject to shopping space being equal. “At the moment, however, this is
not realistic for Russian airports as designs do not provide for the same amount of space for shops on arrival as they do in departures.” RegStaer’s strategy is to open
as many arrivals shops as possible, inform departing passengers of the arrivals duty free shopping opportunity, and to optimise the arrivals product mix in accordance with the needs and demands of passengers. “All of this will help drive sales
OCTOBER 2019
The Vnukovo Arrivals shop offers a range of categories, including souvenirs, toys and accessories.
within these limited spaces,” says Sagiev. “We also plan to launch a loyalty programme to motivate passengers to shop on arrival.” Aside the arrivals duty free
opportunity, RegStaer is focusing on optimising performance across its existing shops. Currently, the retailer operates around 50 stores at several airports including Vnukovo, Platov and Mineralnye Vody, located in Moscow, Rostov-on-Don and Mineralnye Vody, respectively. “RegStaer has further travel
retail development plans in Russia together with our partner Dufry,” explains Sagiev.
The experience factor According to Sagiev, RegStaer relies on the ‘extensive experience’ of Dufry, which agreed to purchase 60% of the company’s Vnukovo Airport business in June this year. This latest acquisition strengthens a partnership that started in 2012, when Dufry acquired 51% of a RegStaer group joint venture at Moscow Sheremetyevo Airport. “We are trying to follow new
travel retail trends including new shop concepts and the application of digital technology,” says Sagiev. Experience on both company sides
is clearly invaluable when it comes to implementing new technology, formats and travel retail concepts. “Not long ago, we opened a
large walkthrough duty free shop in Terminal A of Vnukovo International Airport and a new Kids Store,” according to Sagiev. “The latter offers various goods
“Gradually, passengers are becoming more aware of the opportunity to shop in duty free stores on arrival in Russia and sales are starting to grow on a monthly basis.”
Vadim Sagiev, RegStaer
for children, including toys, clothes, accessories, confectionery, luggage electronics and books. Sagiev then offers his own take
on the current state of the Russian travel retail and duty free market. He says customers are mainly Russian citizens who – in line with global trends – increasingly seek enjoyable experiences with access to limited edition and novelty products. “Purchasing power is currently
impacted by the exchange rate of the ruble, but the main reasons for buying in duty free have not changed and airports continue to be seen as attractive shopping environments,” he concludes. «
RegStaer’s Kids Store at Vnukovo Airport. TRBUSINESS 69
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