Last year’s big duty free store renovations at South Africa’s Johannesburg and Cape Town airports are paying dividends for Big Five Duty Free.

 

The operator is reporting a double-digit sales increase in business at Johannesburg’s O.R.Tambo International Airport (ORTIA) following flagship store refurbishment and a little help from the recent weakening of the Rand.

 

Big Five – in which Gebr. Heinemann is a major shareholder – completed renovation work on its ORTIA main store in October after starting the refurbishment and upgrade scheme in mid-2012.

 

The company operates the five core duty free departure shops and two core duty free arrival shops at Johannesburg Airport, including the main 1,500sq m mixed category main store that all passengers must pass after leaving passport control and completing security checks.

 

Talking exclusively with The Business in Johannesburg, Big Five Duty Free Director, Chris Harilaou said that while this work was underway at ORTIA, the retailer also took the opportunity to renovate and upgrade its 600sq m mixed category Cape Town International Airport departure shop as well. [It also operates at Durban’s King Shaka International Airport with all three airports owned by the Airports Corporation of South Africa-Ed].

 

COMPLETE RENOVATION

Harilaou said: “Our existing main shop in O.R. Tambo was about seven years old which is a long time in duty free. We have put in newer brands and newer product sections. We decided to do a whole renovation as it has created more convenient shopping.

 

“Our renovated store has an international feel, but we also display a lot of South African liquor. The shop renovation was a challenge as the location was planned as an F&B area overlooking the runway and not as a shop. We have brought the overhead lighting down to a new level to lighten the store.”

 

Harilaou adds that the new Johannesburg shop design is working and ‘sales growth is increasing satisfactorily.’

 

“Our display units and the range of products are larger. The main shop renovation finished in October; we then went through Christmas and then started to see a growth in sales from January,” he said.

 

Currently 45% of Big Five’s duty free sales come from passengers taking flights connecting with other African countries. These buy mostly perfume and liquor on departure.

 

 

LIQUOR IS A MAJOR CATEGORY

Passengers taking European flights account for a further 26% of duty free sales and passengers using Asian flights a further 11% of duty free revenue.

 

Currently, fragrances and cosmetics accounts for more than 30% of the Johannesburg business, with liquor taking a share of around 25% of sales and tobacco 15%.

 

Sales are also growing in Big Five’s two ORTIA Airport arrival shops. Among planned new business initiatives, Harilaou said the company is discussing the possibility of launching ‘a pre-order for collection on arrival service’ with South Africa’s Revenue Service.

 

This is expected to boost liquor sales with many South African travellers wishing to use the service to ensure their preferred brands are in stock and waiting when they return from their travels.