Liquor is a key part of the retailer’s arrivals business at Nadi International Airport.

Fijian travel retailer Tappoo Duty Free is to re-model its 150sq m arrivals duty free store at Nadi International Airport.

The purpose of the revamp is to open up more of the shop, where liquor, tobacco and confectionery comprises 90% of total business.

This will be achieved by changing the floor-plan, according to Kaushal Tappoo, Executive Director, Tappoo Duty Free who told TRBusiness: “We have good visibility in the first half of the shop, but need to increase this in the second half of the store.”

He added: “We will remodel that shop. We are just going through the final design stages in terms of what the floor-space will look like and talking to suppliers about wall-bays and promotional space. The aim with arrivals is to do more business and capture more people in-store.”

Currently in the third year of a seven-year contract (which includes a seven-year extension option), the retailer sees the arrivals project as a worthwhile opportunity. Tappoo said: “Because this is a long-term contract, it is a good opportunity to really invest in the fixtures and fittings and do this well.”

PROJECT TIMELINE

In terms of timeline, the aim is finalise the floor-plan and space by the end of July. “Construction work will not take place during the peak July and August season. We will do this in sections between the middle and end of October. This will involve closing down one section at a time. We don’t want to close the whole shop while work takes place.”

Elsewhere in the airport, Tappoo runs a refurbished 800sq m walkthrough departures store. It also holds the WH Smith and Nike concessions.

The departures revamp formed part of Airports Fiji Limited’s Nadi Airport modernisation project. The store was previously located downstairs, but moved upstairs in 2015.

“Passengers go straight up the escalators and find themselves directly in our store,” Tappoo commented.

Reflecting on a challenging 2017, Tappoo reveals the retailer still registered growth despite various obstacles. “This is the most important thing. It is vital we focus on continuously growing the business.”

Passengers travelling through Nadi International Airport have a strong premium duty free jewellery collection to choose from.

He remarked: “There were ups and downs last year. In Q1, there were floods and cyclones which hit Fiji and brought disruption in February and March. We still came out okay, albeit slightly under budget.”

When it comes to purchasing trends, Tappoo said: “The big brands do well here.  A majority of our tourists are from Australia and New Zealand. What works well in Australia and New Zealand tends to work well in Fiji.

“We always keep an eye on trends in Australia. When we talk to suppliers like Diageo, Pernod and Bacardi we ask them what the trends are in Australia and New Zealand and which [products] customers are choosing.

“Having said that, sales among Asian consumers are growing. We have launched a daily flight to Hong Kong and direct flights too Singapore. Flights to Japan will also begin in July.”

LANDLORD RELATIONSHIP

Lifting the lid on its relationship with landlord Airports Fiji Limited, Tappoo said: “It is a normal landlord and tenant kind of relationship. Every airport is trying to maximise revenue and you can appreciate that.

“Airports Fiji Limited have done a fantastic job renovating the Fiji experience. Visitors going through Fiji now have that ‘Wow’ factor they didn’t have previously.

“The relationship is strong. Rents are high, but it is what it is. All airports are looking to maximise their revenue and you live with that.”

Tappoo Duty Free operates an 800sq m departures store at Nadi International Airport.