Polish travel retailer Baltona Duty Free will introduce a new 296sq m retail space at Katowice International Airport in Pyrzowice, Poland on 1 November.

The Flemingo-owned operator will open the concession in Terminal B, which serves departing Schengen zone passengers, as part of a contract with the Upper Silesian Society Aerial S.A that runs until 31 August 2019.

Under the terms, a renewal of the concession for an agreed period of time is connected with the planned development of Terminal B.

As reported, Baltona Duty Free won a concession covering 1,000sqm of duty free and F&B space at Katowice International Airport’s non-Schengen Terminal A last year where it operates perfumes & cosmetics, tobacco, confectionery and local Polish brands.

The update comes as Baltona Duty Free eyes the opening of its new 800sq m duty free walkthrough concession at Lennart Meri Tallinn Airport’s newly developed airside space to initially begin operation on 1 January, TRBusiness can confirm.

This follows the capturing of a seven-year contract in June with work expected to complete around May/June next year. It will also operate two last-minute outlets for transfer and non-Schengen passengers totalling 180sq m as part of the deal.

POLAND: QUIET PERIOD

In conversation with TRBusiness during the recent TFWA World Exhibition & Conference in Cannes, Baltona Duty Free CEO Piotr Kazimierski called Tallinn a ‘quality win’ that benefitted from its partnership with travel retail specialist The Design Solution to integrate elements of Estonian culture within the store architecture to emphasise sense of place.

“We won versus very strong competitors in the business and we were definitely fortunate to have The Design Solution onboard with us, so their creations were a contributor to our wins.

“I believe this is a total game changer in terms of the retail quality offer. From what we see this kind of offering was available and affordable to other airports and we found a way to offer this quality to smaller airports, especially as this is our bread and butter business.”

Baltona DF’s 800sq m duty free shop at Tallinn Airport is primed for an initial opening in January. 

Kazimierski admits the next 12 to 15 months will be a quiter period as it focuses on construction of new retail units and understanding the business.

“It suits us well; we don’t have to hustle for new business and be stressed that something may not happen as we wish,” he said. “Those 12 to 15 months are a perfect scenario.”

Regarding future business opportunities – particularly in Europe – Kazimierski is confident Baltona Duty Free’s “next wins will come very soon”, but stressed that concentration remains on consolidating the existing business.

“We are looking at a few other projects in the second half of the year; some renewals and some bids and two airports out of five coming up (for bid).”

Piotr Kazimierski, CEO, Baltona Duty Free.

UNITY LINE DEAL

Seperately, the travel retailer has struck a deal on four ferries with Polish ferry and cruise operator Unity Line to begin commercial activities running concurrently with the Katowice concession from 1 November.

Baltona will takeover 500sq m of retail space, including its own shop-in-shops, in duty free stores selling liquor, tobacco, perfume, cosmetics, confectionery, watches, jewellery, fashion & accessories and sunglasses.

Commenting on the on the concession agreement, Kazimierski said: “We are excited by extending the ferry business as we come from the shipping business originally. We have supplied ships since 1946, so we are happy to add the ferries to our portfolio.”

The agreement, which runs to 31 October 2020, is estimated in value at between PLN11m ($3m) and PLN17m ($4.7m) and comprises an annual lump sum fee and variable fee commissions on the value of trading.

Unity Line operates ferries between Świnoujście in Poland and the Swedish ports of Ystad and Trelleborg. Unity Line is aligned to Polsteam, the biggest Polish shipowner and one of the largest in Europe.

Baltona Duty Free operates in Poland, Ukraine, Romania, France, Italy, Belgium, Netherlands and Germany.

Founded in 1946, the company operates a range of travel retail formats including tailored-fit solutions at regional airports.