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NEW ZEALAND. JR Duty Free has won the tender for duty free retailing at Christchurch International Airport (CIAL), ahead of two other bidders, DFS Group (the incumbent) and Duty Free Stores New Zealand. The contract term is eight years.
“We are pleased to announce that JR Duty Free will be the new operator effective 1 July 2010,” said Jim Boult, CIAL Chief Executive. “JR has proven its success as a duty free operator in Australia as well as Wellington and Auckland airports, so we look forward to a successful collaboration.”
JR Duty Free will be operating in two new stores in the International Terminal, reflecting a unique theme relating to the Canterbury region.
Speaking to The Moodie Report after the award, Julie-Ann Beattie, Manager Commercial Development, complimented JR Duty Free on its response to the CIAL board’s desire to see local branding and theming of the stores. “JR Duty Free’s proposal incorporates their brand but is respectful to the local environment, using a local palette of materials.”
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“JR Duty Free’s proposal incorporates their brand but is respectful to the local environment“ |
Julie-Ann Beattie Manager Commercial Development Christchurch International Airport |
JR Duty Free had also, she said, provided the requisite flexibility in store design and ability to move with passenger and flight profile that would enable airport retailing to respond to the seasonality of the Christchurch market, notably over the winter ski season.
Beattie commented: “The contract is aligned with the rebuild of the international departures and arrivals [the International Airside Retail Expansion. On 1 July 2010 JR Duty Free move into a brand new half-store in Departures, at which point the existing half will be demolished and fitted out for operation from 1 September. The same will occur in Arrivals, with the fit-out becoming operational on 1 September.”
The redevelopment of Christchurch’s duty free offering will provide 865sq m of duty free retail space in international airside Departures. This will be boosted by 546sq m in international airside Arrivals, which is due for final completion in October 2010, along with speciality retail and food & beverages development.
Despite the availability of a 100sq m duty free store in international landside Departures, JR Duty Free has opted not to have a landside store. Beattie confirmed that the absence of a landside store “was a reasonably consistent theme in the proposals received.”
Jim Boult believes the airport’s mix of passengers and services creates a strong offering that is unmatched in the region. “We expect to see continued growth over the next few years in not only the core domestic travel market but also in services both at the premium end of the international market and at the high-growth low fare and “no frills” end where strong retail spend can be generated.
“The combination of low-cost carriers stimulating demand across the travel market, the stability of the legacy carriers serving the region, and the global pull of Christchurch as New Zealand’s tourism gateway are all advantageous for Christchurch Airport,” he said.
JR DUTY FREE CELEBRATES VICTORY
The James Richardson Group, of which JR Duty Free is a division, has welcomed its selection as the preferred duty free operator at Christchurch International Airport.
Evelyn Danos, Executive Director of the James Richardson Group, said: “We are delighted that Christchurch Airport has placed their confidence in us to develop and grow the duty free business, in line with their expansion plans for Christchurch Airport.”
She added that “the shopping experience at JR Duty Free at Christchurch Airport will be an extension of Christchurch’s ‘Gateway to the South’ marketing programme.”
Milton Lasnitzki, CEO of the James Richardson Group, indicated: “We will at the earliest opportunity, in conjunction with DFS management, commence a process to invite DFS staff to apply for positions at JR Duty Free. We prefer to employ the existing staff, who already know the airport and the customer.”
“We are excited at the prospect of operating at Christchurch Airport and designing and constructing two stores which will reflect a truly Canterbury and South Island experience,” added Garry Stock, Chairman of James Richardson’s Duty Free division.
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