Shay Tangi, CEO, Layam.

Israeli travel retailer Layam is targeting mergers and acquisitions to grow the business outside Israel.

Established in 1936, 12 years before the state of Israel was created, Layam runs a 450sq m toy shop and 100sq m kids fashion ship 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 is active in all Israeli ports with logistic/commercial facilities and warehouses in Haifa and Ashdod.

SUPPLIER ROLE

Additionally, the company serves as a supplier for the United Nations and armed forces worldwide.

Shay Tangi, CEO, Layam told TRBusiness: “Our plan for the future is to grow the business by mergers and acquisitions. We are trying to buy other duty free companies or establish joint-ventures with them.”

Pressed by TRBusiness on whether any deals are close to completion, Tangi commented: “Discussions are in the early stages, but we are in contact with several duty free companies in Europe and Africa.

Layam runs a  liquor, tobacco and perfumes and cosmetics shop in the passenger terminal at the Port of Haifa.

“The aim is to complete the purchase of one retailer by the end of the year. We have strong backing and are part of a big group. If an opportunity presents itself and the price is right we will probably buy.”

The new Ramon International Airport in the south of the country, which is expected to handle around 2.5m pax annually begun operations in February. But with no major new international airports likely to open in Israel for the foreseeable future, seeking mergers and acquisitions outside the country is a no brainer.

“If we want to grow the business, we have to do it by spending money and venturing outside Israel.

Shay Tangi, CEO, Layam believes the DF&TR  toy segment has become a key target for the major manufacturers, particularly in the last year.

“The fastest way of doing this would be to acquire another company, but if there is an opportunity to be present at other airports in Europe or Africa, for example, we will definitely participate in the tenders if  it makes sense to do so,” Tangi said.

Having operated the toy concession at Ben Gurion for the past couple of years, getting to grips with the various challenges facing the category was anything but easy. He recalled: “It was quite an experience on our side as there are not many big toy shops in airports, but we managed to figure things out.

“We understand the needs of the customers and have built really good relationships with the suppliers.”

A shot of the Layam kids fashion shop at Tel Aviv Ben Gurion International Airport Terminal 3.

The DF&TR toy segment has grown in prominence among the major manufacturers, according to Tangi. “The major players have pinpointed travel retail as a key target, particularly in the past year.

“They understand it is a growth engine for them and have enabled us to offer competitive prices and great displays in-store.”

In term of current performance across its Ben Gurion Airport toy and kids fashion concessions, Tangi remarked: “We have an excellent relationship with the airport authority. Rent and concession fees may be high, but there are high-spending quality consumers willing to pay the prices offered. The shops are doing very well.”

The Israeli travel retailer operates a kids fashion shop at Tel Aviv Ben Gurion Terminal 3.