Israeli travel retailer Layam has begun operating its new 100sq m souvenir shop at Tel Aviv Ben Gurion International Airport Terminal 3 having secured the eight-year contract in August 2019.

Under the terms of the agreement, Layam received access to the shop on 3 November 2019, before closing it for a NIS1.5m ($429,320) refurbishment ahead of the opening on 10 November 2019. Revenue during the contract period is expected to amount to ILS160m ($46m). The previous incumbent was the Steimatzky, the oldest and largest bookstore chain in Israel.

Established in 1936, Layam runs a 450sq m toy shop and 100sq m kids fashion shop in Tel Aviv Ben Gurion Terminal 3. It also operates a 70sq m toy shop in Terminal 1. Outside the airport, Layam runs a diplomatic duty free shop in Tel Aviv and liquor and tobacco and perfume and cosmetics shops in the passenger terminals at Ashdod and Haifa seaports.

A member of the International Ship Supplier Association, the company, which is fully controlled by the Teddy Sagi Group is active in all Israeli ports with logistic/commercial facilities and warehouses in Haifa and Ashdod.

EXPANSION PLAN

Speaking at the time the souvenir contract was awarded, Shay Tangi, CEO, Layam told TRBusiness the company was looking to expand through mergers and acquisitions. “We are very excited to win this tender and seeking new opportunities all the time outside Israel. Negotiations are taking place with a couple of duty free companies with a view to doing business.”

Meanwhile, Layam has revealed it is to enter the inflight retail arena through the supply of liquor and tobacco and perfume and cosmetics products, but declined to reveal which airlines it is working with.

He added: “We are very pleased to be expanding our business to further distribution channels on top of what we do with the UN forces, diplomats and port shops. The inflight arena is another important area where we want to be present.”

Tangi, who revealed the company experienced a terrific summer at Tel Aviv Ben Gurion, driven by strong sales of Lego products, would welcome the opportunity to operate full airline concessions. “Given the fact we work with suppliers and brand owners directly, we can promise any airline the best services and best prices.”