Travel Retail Domodedovo (TRD), the joint-venture between Gebr. Heinemann and local partner Greenway has opened a 120sq m arrivals duty free shop at Koltsovo International Airport.

Located at the arrival level of the international terminal behind passport control, the new shop follows the April opening of arrivals stores at Moscow Sheremetyevo (Terminal D and Terminal E) by joint-venture partner Imperial Duty Free (IDF). Last year, TRBusiness was in attendance as IDF dramatically expanded its SVO retail footprint with 10 new outlets.

Heinemann has also open arrivals duty free shops in Saint Petersburg, at Pulkovo International Airport.

COMPREHENSIVE RANGE

The Koltsovo store offers a comprehensive range of local and international spirits, perfume and cosmetics, confectionery and toy items. There is also a focus on travel exclusives, price offers and a special gifting concept.

As first reported by TRBusiness in January, travel retailers were given the green light to operate arrivals duty free shops in Russia based on an order from the Russian government issued on 12 December 2018. This came into force on 12 January 2019.

Speaking to TRBusiness earlier this year, Bernard Schlafstein, Director Sales, Eastern Europe and Central Asia said: “With our arrival business, we will present a comprehensive and varied range of duty free products to passengers with a general focus on liquor and tobacco and perfumes and cosmetics products.

“We see a big growth potential in the opening of arrival shops, as they represent a good source of additional revenue. That is why the airports are also very interested in this new model.”

Following the recent launch of new arrivals concept at Koltsovo Airport, Sergey Govorushko, General Manager, Travel Retail Domodedovo commented: “We are very proud to partner with Koltsovo Airport to extend our business and launch the new arrival concept together.

“This is a great confirmation of our entrepreneurial commitment at the airport and an excellent basis for further turnover growth. Extending our business with arrival shops gives us the opportunity to serve all arriving passengers and thus reach out to customers in a completely different way.”

According to TRD, arrivals shops give passengers the opportunity to travel light on departure and buy big on arrival. The joint-venture also believes the stores provide a last-minute opportunity for travellers to purchase gifts for their loved ones at home, as well as international branded duty free goods at attractive prices.

Additionally, the arrivals shops offer passengers from the Eurasian Customs Union the opportunity to purchase duty free goods which are not allowed on departures.

While Russian citizens account for around 90% of passengers at SVX, other nationalities include Europeans and Asians. There has also been a significant increase in Chinese passengers over the past few years.

VITAL GROWTH COMPONENT

Since the introduction of arrivals duty free in Russia, Gebr. Heinemann has viewed the business as a vital part of the company’s growth strategy. Prior to opening the Koltsovo Airport outlet, IDF unveiled arrivals stores at Moscow Sheremetyevo Airport (Terminal D and E) in April.

Oleg Zhytomyrsky, Director Sales Eastern Europe & Central Asia at Gebr. Heinemann commented: “We are currently investing heavily in the arrival business, consolidating our position in the region. We are very satisfied with the results so far and will further strengthen our commitment here.”

By the end of next year, Geb Heinemann is expecting to have opened arrivals shops in all Russian airports where it currently has a presence through various partnerships. These include Samara, Kazan, Novosibirsk and Chelyabinsk.

Zhytomyrsky added: “Additionally, all airports and seaports where the new Russian legislation allows arrival duty free are generally of vital interest to us.”

At the start of the year, Dufry-controlled Regstaer Group made its Russian arrivals duty free debut with the opening of a store at Vnukovo Airport. It then added a second store in February at Platov Airport in Rostov-on-Don.