Lviv Airport in Ukraine has extended Baltona Duty Free’s multi-category retail concession contract, comprising 500sq m, for a further three years.

 

The operation, which is exclusive to Flemingo-owned Baltona, originally began trading in May 2012 during the UEFA European Football tournament, when the airport built a new 34,000q m terminal. This new terminal is now capable of handling up to 1,220 passengers per hour (10.7m passengers annually).

 

Baltona Duty Free, which manages over 50 travel retail, food & beverage and convenience outlets in 15 European countries, says that its new strategy creates an ‘attractive environment for travellers by offering a high quality experience’.

 

As reported, Flemingo International-owned Baltona Group reported revenue growth of 36% yoy to zł 211.39m (US$56.6m) in 1H 2015, while operating profit reached zł 1.69m ($452,000). However, in the first half the group reported an EBIT loss of approximately zł5m ($1.3m).

Baltona is a leading duty free retailer in Poland operating at seven out of its 13 airports, with about 40% of the market share.

The European travel retailer’s total store sales increased by 22% compared to 1H 2014, while revenues from food service recorded a 40% growth yoy.

The cross-category store, which was upgraded in 2013, offers imported and local liquor brands, a wide selection of cosmetics and perfume products as well as tobacco, fashion and travel accessories, watches and jewellery.

As well as products from core duty free categories, Baltona has created a ‘Regionals zone’ for Ukrainian products where passengers will find local brands, including the Lviv Chocolate Factory, Lvivska Horilka, Hlebniy Dar and Roshen.

Baltona claims that customers can make savings of up to 20% compared to the domestic market, on beauty products.

Baltona’s CEO Piotr Kazimierski said: “Lviv Airport is an important site for our company. This is one of our flagship foreign stores. The airport and the local authorities, despite the current geo-political situation is very supportive.

“We are proud that we can build the business in such a friendly environment. We are positive that Lviv will continue attracting more foreign visitors and the passenger traffic will.”