Sakal Bros runs four concessions at the terminal, including a large electronics shop, with some 1,000sq m of space. Sakal described the design as “modern”, with a black ceiling lending clean-cut lines to the shop, while lightboxes in yellow, red and green add colour |
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ISRAEL. Sakal Bros is looking forward to a strong 2005 following the recent opening of Ben Gurion Airport’s new terminal three.
Company president Meir Sakal told The Moodie Report that, as the financial year is coming to an end, the new shops are unlikely to increase the year’s sales significantly. But he is happy with what he is seeing so far in sales at the new stores.
“We are quite happy with the progress so far, never mind that this is the lowest season in the year,” said Sakal. “But we feel that the passengers are stepping into the shops, and they are much happier with the larger space and selection of the shops.
“It is not the best season for passenger numbers, so it’s not the best season to compare. When it is quiet people buy less, but we feel that there is a buying atmosphere here.”
For the financial year so far, Sakal said, passenger numbers are growing at a rate of +10% but sales are showing increases of more than +15%.
Among the four concessions held by Sakal Bros in the new terminal, results for the first two weeks show that the electronics store is showing “a trend of increase in sales”, said the financial controller Eyal Oz. “We are also very happy with the sales in the watches store this week,” he added. “Sales are increasing there.”
Ben Gurion’s T3 – also known as Ben Gurion 2000 – began operations on 3 November, with the first flight operated by El Al departing at 1.15pm for New York. At 2pm the first arrival to the airport was an El Al flight from New York.
Costing some US$1 billion to build, the terminal will enable Ben Gurion to handle 16 million passengers a year. This year some 7.7 million are expected to pass through. The new terminal has 15,000sq m of duty free shops and a 5,000sq m commercial centre for the general public.
Sakal Bros runs four concessions at the terminal. It operates a large electronics shop, with some 1,000sq m of space. Sakal described the design as “modern”, as a black ceiling lends clean cut lines to the shop, while lightboxes in yellow, red and green add colour.
Sakal noted that suppliers are also helping to generate sales by conducting in-store promotions. One such promotion for Canon digital photo-printers has been doing very well, he said. “We have people demonstrating how these printers can be used, and they are selling more than 120 per day.”
The company also runs a 250sq m toy and multimedia store. “This is a very special place for children. There are electronic games and computers, and children can come and play in the shop,” said Sakal.
Another shop for children is a sports products fashion store. About 100sq m in size, it sells clothing and sports shoes.
In addition to these duty free concessions, Sakal Bros also operates shops in the commercial centre. “We have exactly the same products there, so family members who are not travelling can come and see what they want in the commercial centre. Then they can get the family member who is travelling to buy the items for them in duty free,” said Sakal.
The concept of this commercial centre underlines the fact that it is Israelis who make up the lion’s share of shoppers in the country’s duty free. Sakal notes that, traditionally, they make up some 90% of the company’s customers. And following the 2001 Intifada, Israel has lost some 80% of its foreign tourists – so travelling locals have become all the more important to the airport’s travel retailers.
But over the past year traffic has since begun to pick up. In 2003 foreign passenger numbers increased by +30% year-on-year.
“Now we believe that there will be another increase of +30-40% next year. That’s because things are getting quieter. It will take another two to three years to get back to the levels before the Intifada, but we see that things are getting better,” said Sakal.
MORE STORIES ON BEN GURION AIRPORT AND SAKAL BROS
Sakal Bros slams proposed allowances cut – 10/08/04
Sakal Group wins two more tenders at Ben Gurion 2000 – 18/04/04
Sakal Duty Free gets timely boost – 31 March 2004
