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| Scenes from the impressively revamped retail offer at Almaty airport |
KAZAKSTAN. Gebr Heinemann, in conjunction with local partners, has consolidated its strong position in the fast-growing Kazakstan market.
Boosted by growing export revenues and soaring international oil prices the cities of Almaty and Astana are in the midst of what Gebr Heinemann’s Head of Sales for the region Pierre Viarnaud described as “a construction frenzy”, with the international airports of both cities having been rebuilt recently to international standards.
He told The Moodie Report: “Passenger traffic grows steadily and we estimate that the number of international departing passengers at the two main airports of Almaty and Astana will reach about 750,000 and 70,000 respectively in 2005.
“Gebr Heinemann has been the only western duty free operator present in Almaty (for the last 10 years) and Astana (for the last four),” he added. “The terminal of Almaty airport was rebuilt at the end of 2004 and that of Astana was completed in the middle of 2005.”
He said that Kazakhstan is often cited after Russia and ahead of Ukraine when listing the most promising emerging markets in the former Soviet Union because of the state’s “vast resources” in oil, gas and minerals. But although it occupies a territory as large as western Europe, Kazakhstan has only about 17 million inhabitants. The largest concentrations surround Almaty, Astana and to a lesser extent Atyrau on the Caspian sea.
Almaty
Gebr Heinemann, in partnership with two companies, Orient Eagle and Almaty Duty Free, invested in the construction of three duty free shops. These cover all main product categories and occupy about 550sq m.
Orient Eagle manages two shops, one of 160sq m with wines, spirits, tobacco and confectionary, plus a 40sq m shop for perfumes and cosmetics
Almaty Duty Free manages a 350sq m shop dedicated to fashion and accessory brands. Additionally the retailer runs a local product shop and a restaurant.
Viarnaud noted: “All shop fittings were produced in Western Europe and a number of international brand owners (such as Philip Morris, Reemtsma, JTI, Diageo, Pernod Ricard, Hennessy, Masterfoods and Lindt)were given the opportunity to personalise gondola ends or wall units. In the perfume shop the leading brands in Europe and in the region, such as Chanel, Dior, Armani, Lancôme or Gucci, are on offer.”
Viarnaud told The Moodie Report that Orient Eagle’s sales rose by +50% year-on-year in 2005 due to the renovation programme.
Almaty Duty Free predominant 350sq m offer is dedicated to what Viarnaud claimed is “probably the biggest single fashion and accessories duty free shop in the region today, including Russia”.
He noted: “Shop-in-shops and personalised corners display brands such as Boss and Zegna in the fashion segment; Zilli and Lancel (soon to be rejoined by Ferragamo in March 2006); Mont Blanc, Swarovski as well as the top brands of sunglasses, ties, watches and some toys.”
Since opening in October, sales are “on target” Viarnaud said, despite “predictably unpredictable” delays.
“We and our partners at Almaty Duty Free are very optimistic for the future,” he concluded.
Astana – tender results awaited
As the reconstruction of Astana airport was finalised last year the shop run by existing operator Astana Duty Free (Gebr Heinemann’s partner) was closed.
A tender has been announced to determine who will operate the duty free shop in the newly-built terminal.
Viarnaud said that details concerning the tender have not yet been published. “Although the growth in passenger traffic in Astana Airport has been encouraging, it is expected to remain far below that of Almaty, the business capital and seat of most oil companies present in Kazakhstan,” he noted.
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