SLOVENIA. Kompas MTS (Kompas Mejni Turisticni Servis) may have to close all four of its travel retail shops in Slovenia by the end of the year – depending on the impact of the end of land border duty free sales on 1 May.
A Kompas spokesperson told The Moodie Report: “We will try to maintain our four locations from 1 May over the high season (June to September) and will reassess things then but there is a very good chance that we will have to close.”
The Slovenian government has decreed that all border duty free will halt from 1 May – even with non-EU countries. At present Kompas’s four duty free shops serve the borders with Hungary and Croatia. Hungary will join the EU on 1 May but Croatia will not.
The Kompas spokesperson saw little value in introducing the travel retail concept into Kompas stores. “It will not be as interesting for customers. Travel retail is just a name – after you have paid VAT and excise you still have to compete with downtown Ljubljana.”
He said the situation was made especially difficult by the government ban on alcohol and liquor advertising which made up 60% of the company’s trade.
Kompas runs 23 shops, including 18 duty paid border shops belonging to the Kompas Shop chain on the Slovenian borders with Italy and Austria. It also has four duty free shops on the Slovenian borders with Hungary and Croatia, and a Kompas Shop in the capital Ljubljana (pictured).
Kompas MTS, established in 1951, markets mainly cosmetics, tobacco products and drinks.
