US. HKG Duty Free is mounting a major expansion of its duty free store operations on the US-Mexico border.
The independent company is to open seven new border stores between the fourth quarter of 2008 and through 2009, including 35,000sq ft of new retail space at the El Portal Center in Laredo, Texas.
This complex will be home to HKG’s new flagship duty free store, a 10,000sq ft outlet that is scheduled to open in mid-December this year.
The company is also committed to a major renovation programme of all its existing stores.
Founded in 1977 in Laredo by the Khaledi family, the HKG Group started out in the electronics business before transitioning to full service duty free retail. The family company owns six shops at various crossings along the US-Mexico border: Laredo Grant, Laredo Santa Ursula, Brownsville, Hidalgo, Roma and El Paso.
With border crossings numbering tens of millions annually, HKG has seen its turnover increase by +15% each year since 1999. Revenues surpassed US$100 million last year.
The highlight of the ambitious development program is the 35,000 sq ft El Portal project. Located in Laredo, on the bridge between Mexico and the US, El Portal will provide easy access to approximately 7 million pedestrians annually.
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An artist’s impressions of HKG Duty Free’s new El Portal flagship store | |
Each HKG store carries a variety of traditional duty free products – including perfumes & cosmetics, wines & spirits and tobacco – along with the latest in electronics.
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Footfall generator: The charts underline the heavy volumes that cross the US-Mexico border (Source: US Department of Transportation) |
FURTHER DEVELOPMENTS
Besides the El Portal flagship store, HKG is set to open five new border shops in the fourth quarter of 2008 through 2009: Calexico, California (2,898sq ft); Nogales, Arizona (2,469sq ft); as well as Eagle Pass (5,040sq ft), Brownsville and Rio Grande (5,795sq ft) in Texas.
In addition the company has undertaken a major renovation programme for all its existing stores with the help of Miami-based architectural firm Pavlik & Associates. The firm counts DFA, Palacio de Hierro, Hugo Boss, Kaufmann, Universal Studios, Macy’s and Sears among its clients.
With the new openings HKG will have retail stores with a consistent image and quality at all the major border crossings along the US-Mexico border.
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This image captures the vibrant look that will highlight the new HKG border stores |
ABOUT HKG MANAGEMENT
HKG brings together a powerful and experienced management team with years of experience in the duty free channel and related sectors.
Ross Khaledi – President/Owner: For over 20 years Ross Khaledi has created and led numerous enterprises in addition to the travel retail business, including construction, commercial development and electronics production and distribution.
Shahram Khaledi – Vice President/Owner: After attending the University of Texas, Shahram Khaledi returned to Laredo, Texas to join his brother in the family business. Many years of distribution experience have seen him frequently meet producers and suppliers around the globe to ensure that HKG Duty Free stays at the cutting edge of product offerings, new marketing techniques and emerging markets in which to expand.
After opening their first duty free shop in 1999, the brothers expanded their travel retail stores along the US southern border to the current six shops, focusing on a product mix catering to the Mexican consumer.
After opening their first duty free shop in 1999, the brothers expanded their travel retail stores along the US southern border to the current six shops, focusing on a product mix catering to the Mexican consumer.
John Hernandez – Executive Director: As Executive Director, Hernandez plays a major role in developing the company’s overall strategic direction, planning and structuring at the corporate level while establishing business direction and sales objectives. For 30 years he held various key management positions at Philip Morris International based in the US Duty Free market.
Michael Rimakis – Managing Director: As Managing Director, Rimakis is overseeing HKG’s expansion, identifying new business opportunities and leveraging over three decades of industry contacts to develop strategic partnerships with key product suppliers around the world. He brings with him 32 years of experience with Philip Morris International, including a peiod as Director of the Duty Free division.
Marco Arilli – VP Merchandising Duty Free: With over 20 years of retail experience at Director level and above with major companies such as JC Penny and LVMH, Marco Arilli brings to HKG extensive duty free experence at Starboard Cruise services, where he managed the merchandising, planning and distribution for 84 cruise ship lines all over the world. At HKG, Marco will build a merchandising, planning and distribution team, establish direct status with key suppliers, implement innovative designs for product display and develop merchandising programmes that will contribute to sales and margin growth.
Paul Crevelli – VP Merchandising Consumer Electronics: With a near 25-year background in consumer electronics at buyer, senior buyer and director levels, Paul Crevelli is responsible for vendor selection and sku assortment, vendor program negotiation and management, advertising and marketing of the category, and developing new business in the electronics and communications arena.
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| Management strength in-depth (Clockwise from top left): President/Owner Ross Khaledi, Vice President/Owner Shahram Khaledi, Executive Director John Hernandez, VP Merchandising Consumer Electronics Paul Crevelli, VP Merchandising Duty Free Marco Arilli, and Managing Director Michael Rimakis | ||
