MBJ Airports to redevelop Sangster retail area

By Andrew Pentol |

Jamaica-lead

Duty Free space could be expanded at Sangster International Airport.

MBJ Airports Limited (MBJ) is to decide on potential changes to the central retail area at Sangster International Airport.

This follows last week’s announcement that The Design Solution (TDS) has created a new design for the main terminal. The purpose of this is to dramatically increase exposure to the retail offer and make it visible to all passengers.

While working on the design element of the project with TDS and Pragma Consulting, a strategic partner for operators and investors in consumer markets, MBJ determined it was possible to redevelop the commercial area in the process.

Currently, the two-level layout is making it extremely difficult to give all passengers full exposure to the entire commercial offer at the airport, which handled 4.3m passengers in 2017.

The majority of the airport’s passengers are tourists, broken down on a nationality level as follows: US (60%), Canada (20%), Europe and the UK (15%) and the Rest of the World (5%).

REVENUE INCREASE EXPECTED

The commercial offer itself includes two walkthrough departures duty free stores spanning 1,486sq m one 115sq m arrivals duty free shop that was expanded last April, together with a small kiosk (departures) selling DF products. All outlets are operated by Dufry Group, which has held the contract since 2012.

In addition, there are two duty free jewellery stores carrying major brands such as Rolex and a cigar store operated by local companies.

The news and convenience concession is run by the Lagardère Travel Retail-owned Relay brand. The remainder of the speciality offer comprises local companies with brands such as Sun Factory, Tortuga Rum Company and Tuff Gong Traders.

On clearing security on the second floor, travellers immediately see all the shops in the central area, which is where approximately 50% of the outlets are actually located.

Montego Bay arrivals Dufry copy

The new 115sq m expanded arrivals duty free shop opened last April.

With gates at each end of the building, passengers turning towards the western gates have no exposure to the core retail offer towards the southern end of the terminal and vice-versa.

Speaking exclusively to TRBusiness, MBJ Airports Limited Manager Commercial Business Development and Marketing Sharon Hislop-Holt said: “The first option [of the development] is to only change the entrance to the retail area to ensure 100% of passengers see all the shops in the central retail area.

“The second option is to change the entrance, which will result in 100% footfall and expand the [retail] footprint.”

Hislop-Holt, who is expecting a 20% revenue increase in the central area in the first year of trading following completion of the project this year or next added: “We are already considering which brands we would add should we have a larger space and have been communicating with the existing operators to assess available options.”

Pressed by TRBusiness for more information on the possible plans for the retail area, she commented: “The Design Solution has proposed two options and we must consider the viability of each one.  The option for a maximum expansion is exciting but there are costs to take into account. We might, therefore, expand somewhere between the minimum and maximum option proposed.

“This could be anything from a 10% to 50% increase in [retail] space in the central area.”

According to MBJ Airports the aim is to provide a convenient shopping experience and to raise the bar in terms of product quality and look and feel of the shops.

 

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