ISRAEL. Israel-headquartered duty free retailer Layam says it is currently in talks with several parties regarding acquisitions and mergers, as it actively seeks to grow its international presence in travel retail.
Layam CEO Shay Tangi told The Moodie Davitt Report that his company is “in negotiations at the moment and will have announcements to make when things are finalised”. He also revealed that the talks involve companies in Europe and Africa.
Layam’s current travel retail interests include four stores at Tel Aviv Ben Gurion International Airport. These are a 450sq m toy shop and a 100sq m children’s fashion store in Terminal 3, plus an additional 50sq m toy shop in Terminal 1. It also runs a 500sq m store offering duty free categories including wines & spirits, cigarettes, and perfumes & cosmetics.
Interests outside the airport environment include duty free stores at both Haifa (1,000sq m) and Ashdod (2,200sq m) ports.
Layam, which was established in 1936, also runs a successful ship chandelling business, supplying over 400 ships on a monthly basis with products including tobacco, spirits, wines, beers, electrical goods, and confectionery. It also acts as a supplier for UN forces and force observers in Israel and around the world.
Tangi said that growth prospects were limited in Israel, though he does not rule out some level of growth. That has informed the company’s strategy to grow the business outside the country. Asked if Israel’s new Ramon International Airport could hold potential opportunities for Layam, he firmly stated that this major infrastructure development in his country is “not a target”.
He added that Layam is now actively seeking tender opportunities internationally. “We are waiting on new tenders to open and we will make a bid for anything that is of strategic interest,” Tangi told The Moodie Davitt Report. “Our infrastructure and financial strength gives us the ability to be a serious bidder for any opportunities that open up.”
Tangi stated that he sees the toy market in duty free as one which will grow significantly. Asked for his reasons for that confidence, he replied: “Toys are an emotional, impulse purchase for the consumer. At Layam’s stores we are offering great prices compared to other duty free shops and local markets.”
He added that Layam is now running a buy and pick-up on return system, which enhances the offer. He said: “This is making our business larger due to the fact, for example, that low cost airlines are being very strict with their baggage weights.”
Other growth areas predicted by Tangi include confectionery, perfumes & cosmetics, and fashion & accessories.
Asked for his view on the future development of the worldwide travel retail market, Tangi said: “According to a study we made, the number of passengers will grow, therefore I truly believe that impulse buying in travel retail will expand.
“Buying in duty free is very convenient for the end consumer and it is up to us, as a retailer, to provide the traveller with a great shopping experience.”
