Netherlands-based distributor, Salud Duty Free, says its new duty free shop concept focuses on ‘adding value’ and creating an experience for its customers, as it insists that it will stock products ‘without contract or paid shelf space’.

 

The store which will open on the German island of Heligoland (aka Helgoland) in the North Sea; is considered to be a small tourist haven with its tax-exempt status.

 

If the new store is successful, Salud Duty Free says it would like to open other stores elsewhere in Europe.

 

“The aim is to open up more duty free stores that [offer] additional value, without contract or paid shelf space; we just sell products that we think it’s worth visiting our shop for,” Maurice van Vliet, Salud Duty Free’s Managing Director tells TRBusiness.

 

“It doesn’t make sense to offer products which customers can buy in the domestic market too, even though our prices would be a bit more competitive.”

 

LIMITED EDITIONS AND SPECIAL BOTTLINGS

The company will open its first 250sq m duty free store in Heligoland in May this year, which Van Vliet says make the ‘the perfect location in terms of size and possibilities’.

 

“There is a good passenger flow, good conditions etc. We were looking for quite some time to start this project, but have now found the right conditions to do so.”

 

The new shop will offer products from core duty free categories such as tobacco, liquor, perfume, however, Van Vliet is keen to point out that Salud DF will concentrate more on craft products, limited editions, special releases, special cask bottlings which will only be available in this store.

“These include brands such as Chichibu, Kinobi aged in Karuizawa casks, rare releases from Diageo, but also products like Bumbu and Malfy gin,” adds Van Vliet.

 

Van Vliet expects its customer base to comprise predominantly of German and Scandinavian travellers and those working offshore at wind farms in the North Sea.

 

CREATING REASONS TO VISIT HELIGOLAND

When asked how the company plans to promote the store, he said the company is relying mostly on ‘word of mouth’ advertising.

 

“When people find out that they can buy the latest release from Chichibu, they will pay €100 ($113) for a ferry to come to Helgoland and buy the bottle; no doubt.

 

“Same with special editions of cigars etc. We will visit the distillery in Chichibu next month and we try to do the same for many brands that we carry.”

The new concept is not only about offering a price difference – although Van Vliet admits it is difficult for duty free stores to be genuinely competitive on price any more – but about offering something they can’t get anywhere else.

 

“Also, customers can have a sip of whisky before they buy, have a sandwich after they finish shopping and enjoy a cigar before buying the case,” says Van Vliet. “The concept has a clear design with easy navigation and totally stands out compared to our competitors.

 

“It’s about offering that bit of service, and creating a bit of a buzz. We need to create reasons for people to visit Helgoland; those special releases and bit of a price difference.”