Turkey’s Unifree Duty Free, the winner of what has been termed the ‘world’s biggest duty free agreement’ at the Istanbul New Airport, has promised it will offer very competitive pricing when the hub is opened in 2018.  

Ali Senher, General Manager of Unifree – in which Germany’s Gebr. Heinemann is the majority shareholder – tells TRBusiness: “Our pricing policy for Istanbul New Airport offers unbeatable prices in key categories by committing to competitive global price benchmarking with Europe and worldwide large-scale international airports.”Unifree – which has a retail management contract for 25 years – plans to start the sub-leasing for its vast 53,000sq m retail space “in the coming months” according to Sehner. Of this, 6,500sq m will be dedicated to international luxury boutiques in the departure area.

To get an idea of just how big that space is – and the job in hand – Unifree currently operates 131 duty free stores, in 23 different airports, in more than eight countries, and covers a total area of 28,000 sq m – about half the space it is now developing at the new airport. Meanwhile, Gebr. Heinemann operates 230 duty free stores at 67 airports covering a total area of 77,000sq m.

‘BRANDS WILL BE SIGNED OFF THIS YEAR’

Senher says: “We will have local and international luxury, as well as High Street brands. We’re still working on the master plan of the boutiques’ area and expect that the brands will be signed off this year.”

TRBusiness understands that the retail sub-leasing will probably not go ahead until İGA Havalimani İsletme, the operator of Istanbul New Airport, awards the food and beverage contract(s) because, until that happens, the exact spaces available are not fixed.

Mertol Genc, CEO of İGA Havalimani İsletme tells TRBusiness: “We are planning to award the F&B and other retail space towards the end of 2015. Total square metres and split of this area will be set according to new passenger trends study from our consultants.”

A BIGGER RETAIL CONTRIBUTION

Due to the large space allocation for retail, İGA expects the retail contribution to total revenue, once the airport is operational, to be high. Genc, comments: “It is hard to give an estimate before we complete all tenders (but) it looks like it will be slightly higher than the industry standard because of the unique experience we will create.”

That experience will go beyond the classic travel retail store and “the cliché form of duty free” as Unifree describes conventional offers. The retailer is planning exclusive lounges where customers can taste premium products while relaxing; a games zone for entertaining; a spa centre for treatments plus nail care, make-up, hair salon; and a gentlemen’s lounge for personal care. “Furthermore a Unikids space will give parents the time and freedom to comfortably enjoy the Unifree Dutyfree shopping experience,” adds Senher.

ALMOST 50% TRAFFIC FROM EUROPE
İGA estimates that the first phase of the new airport will include one terminal with a 90m annual passenger capacity and three runways. “Based on the statistics and studies, the origin of traffic, irrespective of the nationality, is roughly expected as follows; Europe 46%, Turkey 22%, Middle East 13%, Asia 8%, Africa 5%, North America 4%, and others,” Genc tells TRBusiness.

These estimates are also are closely correlated with ambitious growth plans from Turkish Airlines, as well as foreign airlines at Istanbul.

Istanbul New Airport is currently being built 35km away from the city centre in the north of Istanbul having been initiated by the state airports authority (DHMİ) in 2013. The construction will be completed in four phases. When all the phases are complete, the hub will have an annual passenger capacity of 150m and hopes to have 350 destinations.