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AZ Duty Free is set to open a new diplomatic store in the centre of Baku |
AZERBAIJAN. AZ Duty Free Shops, which operates the Astara Duty Free border store between Azerbaijan and Iran, is set to open a new diplomatic store in the centre of Baku, Azerbaijan’s capital, in July.
The company has unveiled an ambitiously upscale look for the new store, which will cater to diplomats and their families. The retailer is planning to develop the service so that it can offer duty free products to outbound diplomatic travellers, delivered to their flights.
AZ Duty Free Acting Managing Director S. Sadri told The Moodie Report: “This is a totally new business, located in Baku’s business district. A conservative year one sales forecast is US$2.5 million and we expect spirits and wines to be our biggest sellers.”
Sadri said he was optimistic about the prospects for the business, and for duty free in the country. “We expect duty free to continue increasing due to the significant growth forecast for tourism in Azerbaijan,” he said. “Furthermore, we will see the establishment of many new embassies and consulates from countries not yet formally represented here.”
AZ Duty Free was created in 2007 and its first outlet, the Astara border store, opened in mid-2008. Since opening, Sadri noted, it has enjoyed compound average sales growth of +75%. He added: “Building on the success of our existing business, we were granted the permit to establish the diplomatic duty free shop.”
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