Travel Retail Norway (TRN) is expected to open its new Oslo Gardermoen Airport duty free arrivals shop early next month – which will be double the size of the existing store – followed by a new departure shop opening on 1 December this year.

As first reported by TRBusiness back in May and updated here, the decade-old TRN joint venture operation comprising Heinemann and Norse-Trade already generates more annual duty free sales turnover than Copenhagen, Stockholm and Helsinki airports put together.

AIMING FOR A 20% INCREASE….

Airport authority Avinor also tells TRBusiness that this expansion could potentially add at least another 20% or round $90m once the shops are larger and terminal congestion problems are solved, according to Espen Ettre, Oslo Airport’s Director Property and Commercial Development.

He said last year that the $1.7bn terminal expansion can’t come soon enough for an operation which already has a world-beating annual sales turnover in excess of $400m, but which also suffers from acute congestion at peak times.

 

 

 

 

 

HEINEMANN EXTENSION TO 2022

In fact, Ettre said it was Heinemann’s ‘willingness to invest in the business’ which was behind Avinor’s earlier decision to extend TRN’s countrywide airports’ contract by an additional five years through to 2022, along with its proven expertise in sales and logistics – vital skills at Oslo Airport where the product replenishment process can be challenging due to the sheer demand.

 

[TRN now operates 12 shops at Norwegian airports of Oslo, Kristiansand, Bergen, Trondheim and Stavanger, with a total employee count of 1,150 employees].

This expansion will effectively increase Oslo Airport’s total retail sales area from about 10,000sq m to between 22-23,000sq m.

 

It also comes ahead of next April’s long-awaited opening of Oslo Airport’s new building on Thursday, 27 April 2017. This will effectively double the size of the cramped existing building, with a 30m annual passenger capacity.

 

UNIQUE ARRIVALS SHOP OPERATION…

Demand for duty free goods remains very high in Norway due to the big savings available against the high excise taxes charged on alcohol and tobacco in the domestic market (where a strict alcohol monopoly operates). For example, duty free prices on wine are typically around 20% lower, while spirits’ prices are up to 50%, while perfume and cosmetics are also 25% below the average prices on the local High Street.

Norwegian travellers have also become experts at maximising their allowances and a good example can be seen on ‘an average Sunday’.

 

This is when Oslo Gardermoen’s duty free arrivals shop sells ‘an average’ of around 25,000 bottles of wine, with Heinemann’s renowned logistics coming into intense play to replenish these and other stocks from its Oslo airport and Hamburg Allermöhe warehouses.

 

 

 

 

 

 

CREATING A SPECIAL SHOPPING EXPERIENCE

“The new duty free shop is designed to make Norwegians proud of returning to their home country. The shop will offer a unique shopping experience”, says Travel Retail Norway CEO Håkon Fjeld-Hansen.

The new shop has been designed in ‘a blend of Norwegian and international architecture’ and importantly it will feature a much-needed new check-out system complete with 43 cash registers compared to the current 28.

 

This component alone is expected to increase sales considerably, as in the past potential customers have had to queue to be served, with some inevitably opting not to bother.

TRN is now promising a significant investment in new digital solutions for an ‘up-to-date shopping experience’, with Fjeld-Hansen pointing to ‘a larger and better selection’ of products. He adds: “A considerable growth in revenues from our Norwegian and foreign passengers is expected.”

 

 

 

 

OTHER NEW RETAILERS….
Meanwhile, ‘the new Oslo Airport’ opening next April will also see other retail additions introduced at the airport, including ‘a significantly improved selection of sportswear’, a delicatessen, pharmacy and several fashion concepts with a total of ten operators responsible for 21 shops – compared to today’s 12.

These will include the ARG (Airport Retail Group) new fashion concept Æra, numbering five shops, with two aimed at women, two at men, plus one Æra Active sports shop selling well-known sports brands.

 

In addition, there will be a delicatessen shop called ‘Fish&Berries’ from SSP (Select Service Partner), featuring Norwegian foodstuffs, an Apotek1 pharmacy and a Rolling Luggage travel goods shop.

Travel Retail Norway will also continue with its Travel Value Fashion shop concept, with a second store scheduled to open in the new pier. Other retailers expected to open also include Tanum bookstore, Thune Jewelry & Watches and Ting (interiors and gifts).