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Since divesting its Australian operations in 1995, James Richardson has focused its duty free activities in Israel, including Ben Gurion 2000 terminal three (top right). Now it is adopting a twin-hub strategy. | |
ISRAEL. James Richardson announced in the local press yesterday that it had won a tender to open a duty free store in Ashdod Port.
The retailer said it expects the store to boost its sales by ILS40 million (US$8.7 million), amounting to 5% of its total sales.
The new 750sq m store will open in March. It will serve crews and passengers of ships, and sell ship supplies.
The Moodie Report Backgrounder on James Richardson
James Richardson entered the duty free retailing business in 1972, when it began operations at Brisbane Airport, writes Hui Min Neo Between 1972 and 1995 it expanded its business in the Australian duty free market, moving from Brisbane to Sydney, Melbourne, Perth and Cairns airports. In 1995 it sold the duty free business in Australia, including 23 off-airport shops, to Swissair. These stores, together with those of Allders International, eventually became part of The Nuance Group.
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James Richardson’s attractive website at www.dutyfree.co.il. Artwork ©James Richardson |
After the sale the company focused on its duty free operations in Israel as well as on a domestic business in Australia. It began operations in Israel after owner David Mandie was approached while visiting the country to bid for the duty free retailing business at Ben Gurion International Airport. The company won the tender and has operated the store there since 1998. It also secured a ten-year concession for the liquor, tobacco, perfume, cosmetics and confectionery categories in the new Terminal Three, opened in November 2004.
Besides the 3,500sq m store the company also operates T3’s sports store, a brand-name fashion store, a confectionery store and three other general duty free shops in the new terminal. The three smaller duty free stores are located close to the boarding gates, and give passengers the opportunity to buy products at the last minute.
Elsewhere in Israel it operates two border stores – one at a Jordanian crossing, the other at the Sinai Peninsula crossing into Egypt. It also supplies cruise ships leaving from Haifa, and runs a ship chandling business there. In addition it supplies Arkia and Israir airlines.
Back in its original region James Richardson bid on the recent Wellington International Airport tender and re-entered the duty free business in Australia recently by opening downtown stores in Melbourne, Perth and Adelaide.
The company has put in an expression of interest for the A$220 million duty free concession at Sydney Airport. It believes that beyond the company’s familiarity with Australia, its downtown stores should strengthen its case for a duty free operation at Sydney Airport.
The company is profiled in the next issue of The Moodie Report print edition, out later this week. In it Duty Free Division Executive Chairman Garry Stock talks about the retailer’s two-hub strategy – Israel and nearby countries, and Australasia and beyond.
MORE STORIES ON JAMES RICHARDSON
James Richardson enters the race for Sydney – 16/12/2005
James Richardson comeback spells power shift in Australian duty free market – 17/08/05
James Richardson returns to Australian duty free; three stores to open downtown; ‘any airport opportunities’ in Australasia being considered – 16/08/05
James Richardson goes hi-tech to boost sales – 26/07/05
