Angkasa Pura Retail has opened two new convenience stores at Semarang Airport, with further gifting openings planned in the coming months.

Angkasa Pura Retail has opened two shops at the new Semarang Ahmad Yani International Airport (SRG) in Central Java.

The retail subsidiary of state-owned PT Angkasa Pura I has this month extended its retail footprint with two convenience shops spanning a total of 212sq m, one located landside in the public area and another airside post-security. A 135sq m airside gift shop is also set to open in due course.

In addition, Angkasa Pura Retail will open a 105sq m gifting, souvenir and packaged food outlet at Lombok International Airport (LOP) in the coming months.

Meanwhile, a 235sq m gift and souvenirs concept at Bali Ngurah Rai International Airport is also timed to open in August at the domestic departure area (gate six).

‘FLOATING TERMINAL’

Last week, Indonesia’s President Joko Widodo inaugurated the ‘floating’ passenger terminal at Semarang, which replaces the previous 6,702sq m structure.

Spanning 56,652sq m, the IDR 2.075tn ($149m) project has the capacity to handle 6.9m passengers annually, up from the previous 800,000 ceiling.

According to a PWC Indonesia report earlier this year, Angkasa Pura I President Director Faik Fahmi was quoted as saying the ‘floating’ airport term relates to the fact the terminal is built on soft land, parts of which are submersed by water, using poles and pre-fabricated drainage.

In a wide-ranging conversation with TRBusiness during last month’s TFWA Asia Pacific Exhibition & Conference in Singapore, Angkasa Pura Retail revealed plans to re-map its existing 200sq m Surabaya Duty Free concession at Juanda International Airport, where it also operates a speciality beauty outlet at T2 (Baci) and other retail and F&B units.

The re-mapping exercise is expected to take place towards the end of the year and is designed to open up space linked to the passenger gates.

The firm’s merchandise presence at Surabaya includes wines & spirits, tobacco and fashion and accessories.

President of Indonesia Joko Widodo (fifth from left) inaugurated the new Ahmad Yani International Airport Semarang passenger terminal on 7 June. Source: PT Angkasa Pura Airports.

The company is also taking a fresh look at its retail product mix in line with the the spatial re-configuration, with one focus being the development of Indonesian brand Bhumi Tea.

For last two years, it has also boasted a presence in downtown Jakarta at the Kuningan City shopping mall, trading under the name ‘Ourflock’, but that has now come to an end.

“The business was not doing very well and closed in August 2017,” confirmed Widya Wiedagdo, Marketing & Business Development Director, Angkasa Pura Retail.

When asked if there are future plans to re-open in downtown Jakarta, he said: “Not yet, we must take many considerations as there is a lot of competition and the situation is not good for downtown, but the airport [business] is ok.”

When asked for his plans this year, Wiedagdo says the objective is to open chocolate confectionery and fashion accessories stores in travel retail, in addition to dedicating more space towards liquor and spirits at Surabaya Airport.

Widya Wiedagdo, Marketing & Business Development Director, Angkasa Pura Retail during last month’s TFWA Asia Pacific Exhibition & Conference.

HIGHER PROFIT MARGIN

Last year, Angkasa Pura Retail’s revenue reached IDR69bn ($4m).

Profit totalled IDR10.8bn ($774,000) – its first since 2015.

“The reason is we were starting a new business at all the airports [2014-end] and we still had many costs,” commented Wiedagdo.

He added that this year, the firm is eyeing a higher profit margin with a target of IDR16.8bn ($1.2m) from a turnover of IDR93bn ($6m)

Angkasa Pura Retail was founded in October 2014 with a vision to become Indonesia’s most prominent travel retailer.

It currently operates approximately 104 units across 10 airports in the fields of retail (duty free, duty paid and multi-brand stores), F&B (franchised and independent brands), fashion and gastronomy.

The retail arm possesses its own in-house retail brands and also works with partner brands that place an emphasis on quality and character to reflect their positions within airport retail.

Angkasa Pura Retail’s aim is to manage 15% of the commercial areas operated by Angkasa Pura Airports by 2020.

More immediately, it is focusing its energies on selling franchises inside travel retail and downtown and acting (where appropriate) as a master concessionaire, added Wiedagdo.

Recently, it introduced a new ‘My Indonesia’ concept, which includes a mixture of carefully selected products such as gifts and souvenirs currently available at Adisucipto International Airport and Syamsudin Noor International Airport.