RUSSIA. Aer Rianta International (ARI) announced today that it has been awarded a seven-year retail contract with JSC Terminal, the Authority responsible for developing the new Terminal Three at Moscow’s Sheremetyevo Airport.
“It’s a tremendous Christmas present,” a delighted ARI Director-General Eamon Foley told The Moodie Report. “This was a contract we had earmarked for some time as one we had to win. It was simply a ‘must-win’ for us. It was very competitively tendered, so we’re absolutely delighted.”
He said the success was especially sweet given the tough international competition for the contract and the fact that ARI had pioneered the modern-day Moscow airport retailing business. “Sheremetyevo represented the start of ARI and it is very much our flagship. We pioneered the business there, so we know it very well indeed. Of course it has stabilised from those early days, and the Russian economy has grown tremendously. Today it is absolutely booming.”
The contract is one of the largest ever secured by ARI, a wholly-owned subsidiary of the Dublin Airport Authority (DAA). It is expected to generate gross sales significantly in excess of €1 billion over its seven-year term.
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“It’s a tremendous Christmas present”: Aer Rianta International Director General Eamon Foley |
ARI will operate 2,200sq m of retailing space in the duty free area of T3 where it has the rights to sell duty free products across eight separate stores. The company has also signed a seven-year contract to operate two duty paid stores at the terminal’s domestic gates. ARI secured the advertising management contract for T3 earlier this year.
Foley told The Moodie Report that the dramatic growth in Russian spend per head means that ARI will develop a diversified, upscale offer at the new terminal. “The market is Russia has moved very much upmarket and Russians are spending more and more in all areas, including liquor where we’re selling a lot of premium products,” he said. “And the whole beauty area is exploding at our existing Russian locations with super-premium brands such as La Prairie and Creme de La Mer.”
He added: “The spending power of the Russians has increased tremendously… when they have confidence in the brands and the retailer, they will really shop. Today 80% of the market is with Russians, and that’s a market we know very well from our three Moscow locations and St Petersburg.”
Asked if he was confident ARI could deliver a sustainable profit over the term of the contract, Foley said: “Absolutely – we have no worries in that regard.”
In a sentiment that is likely to be widely echoed in the trade, Foley said the success underlined ARI’s commitment to the channel and to Russia. “We’re very happy indeed as it proves we can compete no matter how strong the opposition or how many other markets they are in.”
ARI is one of the world’s leading airport retailers and the largest in Russia. It has a significant presence in the country’s four principle airports and already operates in the two existing terminals at Sheremetyevo Airport. ARI also holds minority shareholdings in Düsseldorf Airport in Germany and in Pafos and Larnaca in Cyprus.
“This is an exciting time for the aviation industry in Russia and for ARI,” said Foley. “Air travel for business and leisure purposes is growing rapidly in Russia. Over 12 million passengers will use T3 every year.
“ARI will work closely with JSC Terminal to ensure we provide these passengers with a retail experience that is truly world class in terms of its design, visual appearance and range of choice. We were the first duty-free operator in Russia, next year we celebrate twenty years in Moscow and this contract heralds an even more significant business presence for us in the years ahead,” he added.
“We are very pleased to announce that we have selected ARI to operate the duty free outlets at Sheremetyevo 3,” said JSC Terminal Marketing Director Tatiana Zotova. “ARI has presented exclusive plans that will add significantly to the quality on offer in the new terminal while the company’s unique experience of conducting business in Russia will ensure the highest operational standards are achieved.”
In a separate statement, JSC Terminal said it expected T3 to handle 5.7 million departing passengers in year one, around 67% of which will be international. T3 will cater for Aeroflot and its code share partners.
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ARI, in partnership with JSC Terminal, is aiming to provide passengers with a world-class retail experience at Sheremetyevo |
About Aer Rianta International
Aer Rianta International is one of the world’s largest airport retailers. The company’s parent opened the first duty free store at Shannon, Ireland in 1947, and is the proud founder of Airport Duty Free. In Russia the company is the largest duty free retailer, with a presence in the region’s four key airports.
Alongside duty free, it also has the management rights for airport advertising at Sheremetyevo 3. ARI is the dedicated international division of the Dublin Airport Authority. DAA operates the three largest airports in Ireland. ARI also has a shareholding in Düsseldorf, Pafos and Larnaca airports. Aer Rianta International has earned its global reputation through its flexible and enterprising business culture and its world class international capability. For additional information, please visit www.ari.ie.
About JSC Terminal
JSC Terminal is the authority responsible for developing and managing T3 at Moscow Sheremetyevo Airport.
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