AUSTRALASIA. The largest New Zealand-owned duty free store retailer, Duty Free Stores New Zealand, is investing heavily on both sides of the Tasman Sea.
As revealed by The Moodie Report in September, the company, which operates at five airports in Australia and New Zealand, has negotiated another eight years to its contract at the Gold Coast airport in Coolangatta, Australia.
The deal coincides with the unveiling of a new Departures store at the Queensland airport following the opening of an Arrivals store in July.
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Towering ambitions: Duty Free Stores New Zealand CEO Grant Archibald (pictured with Christchurch cathedral in the background), is plotting a major expansion drive in Australasia and elsewhere in the Asia Pacific region |
Meanwhile, as the company celebrates landing the duty free store contract at Rotorua International Airport in New Zealand’s North Island, it has also (as reported) lodged a bid for the Christchurch International Airport duty free concession where it is one of three shortlisted companies.
Duty Free Stores New Zealand CEO Grant Archibald said the Christchurch bid is part of an aggressive expansion strategy by the Lower Hutt-based company as it enjoys significant growth in its existing trans-Tasman retail operations and online business.
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“We will vigorously tender for any new duty free concessions that come up within the region that fit with our business model“ |
Grant Archibald CEO Duty Free Stores New Zealand |
“As the largest New Zealand-owned duty free store operator, we are excited about the opportunities in both Australia and New Zealand,” he said. “We have a strong future in both countries, particularly considering the growth across the Tasman.”
The online side of the business is now the single largest part of the company’s New Zealand operations and accounts for a third of New Zealand revenue, said Archibald.
A growing number of passengers now choose to pre-order goods online and arrange collection at Christchurch, Wellington and Auckland airports and Duty Free Stores New Zealand’s existing concessions.
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Duty Free Stores New Zealand was profiled in the October 2009 issue of The Moodie Report Digital Print Edition |
“We expect significant growth in our online retailing with 50,000 New Zealand customers currently on our database,” Archibald said.
Duty Free Stores New Zealand’s turnover was up +11% for the year ended March 2009. Sales in the company’s Australian stores rose +38% in the corresponding period. For the first half of the financial year ending March 2010, same store sales were +19% ahead of the same period last year.
“Our duty free concessions at airports such as Dunedin, Gold Coast and Hamilton, where the contracts have been extended, show how far we have come since the company was established almost 25 years ago,” said Archibald.
“Duty Free Stores New Zealand also won the duty free concessions in Adelaide and Gold Coast, one of the fastest-growing airports in Australia, against international competitors and these airports are delighted with the results.”
The company’s bid for the Christchurch International Airport duty free contract will be based around its impressive track record in the city, he said.
“We are already the second-highest selling duty free retailer through our on-line business and we pride ourselves on our nimble and flexible operation. Duty Free Stores New Zealand is keen to grow the business both within New Zealand and Australia and potentially further afield into Asia.
“We will vigorously tender for any new duty free concessions that come up within the region that fit with our business model.”
MORE STORIES ON DUTY FREE STORES NEW ZEALAND
Duty Free Stores New Zealand confirms eight-year extension at Gold Coast Airport – 23/09/09
