Dufry Group is set to consolidate its leading position in Russian airport retail with the acquisition of a 60% stake in RegStaer Vnukovo.
The purchase of RegStaer Vnukovo, which operates duty free and duty paid outlets at Russia’s third largest airport by passenger volume, adds weight to Dufry’s existing airport contracts at Sheremetyevo, Domodedovo, St Petersburg, Sochi and Krasnodar.
Dufry acquired 51% of the Regstaer Group in 2012 in a deal including an exclusive commercial and purchasing agreement for its operation at Vnukovo Airport.
RegStaer operations at Vnukovo are now expected to be fully consolidated by Dufry once the transaction is completed, which is expected in Q3 following customary approvals.
Dufry will takeover a long-term concession until 2035 that features more than 30 duty free and duty paid shops covering a retail area of more than 6,800sq m.
Core duty free categories plus a selection of fashion and accessory products are available to passengers.
In a statement, Dufry says the purchase will also enable it ‘to extract operational efficiencies’ by merging its management offices in the Moscow area.
Julián Diaz, CEO, Dufry said: “The acquisition of the majority stake of the duty free and duty paid operation at Vnukovo airport is an important step as it allows us to considerably strengthen our position in the Moscow region with an attractive long-term concession.
“Dufry is now present in seven of Russia’s ten largest airports with the opportunity to serve both domestic and international passengers. We are looking forward to offering Vnukovo passengers an attractive shopping experience with the new 1,300 m2 walkthrough shop just opened.
“This also reconfirms our growth strategy which focuses on organic growth as well as on small- and mid-size bolt-on acquisitions, which allow Dufry to extend its global footprint and to leverage our organisational platforms, thus generating additional efficiencies.”
Alexander Baev, Founder of RegStaer Group added: “I am very proud that Dufry will further develop the travel retail operations at this important Moscow hub and continue to strengthen our successful partnership to best serve Vnukovo airport going forward.
“I am convinced that through the in-depth know-how of the leading travel retailer, all passengers at Vnukovo will enjoy a remarkable shopping experience and the access to a unique selection of renowned global and Russian brands.”
RegStaer marked its 20th anniversary of operations in DF&TR with a celebration in Moscow in December prior to the opening of its first 120sq m arrivals duty free store at Vnukovo and second at Platov International Airport.
Russian travel retailers were given the nod to run arrivals duty free shops following an order from the Russian Government last year.
Vnukovo International Airport handles around 22m pax per year.
RegStaer Vnukovo generated sales of €58.8m ($66.3m) in 2018.