NEW ZEALAND. Aer Rianta International’s (ARI) The Loop Duty Free departures store at Auckland International is a “reference point” for what the company can do in the Asia Pacific market and is among the best retail stores in the ARI group today. That’s according to ARI Chief Executive Jack MacGowan, speaking to The Moodie Davitt Report in Auckland in recent days.
As reported, the opening marks the completion of a two-part refurbishment that has taken place over the past six months. It has doubled The Loop Duty Free’s retail footprint at New Zealand’s busiest gateway, to around 1,500sq m in departures.
The Loop Duty Free launched in New Zealand in July 2015, after being one of two successful bidders for the dual concession (the other was Lagardère Travel Retail/Aelia Duty Free, which has also completed its departures offer). The revamped ARI store boasts several new brands and close to 1,000 new items.
The retailer said that sales have climbed by around +30% since the new store fully opened at the start of December. MacGowan noted: “We are above business plan to date and we’ll be pleased if the double-digit growth continues. Since we began trading here in July 2015 we have built the business and helped to transform the offer at Auckland Airport. That doesn’t include price increases either, it is about lifting average spend.
“Now, after opening our store in full on time and on budget, we aim to maintain the momentum. There are more airport upgrades coming to improve the travel experience and we are seeing the popularity of New Zealand with growing numbers of Chinese inbound travellers, which is very positive.
“Auckland Airport is also a very good partner and think very commercially. And they are as constructive as they can be given the operating environment and the requirements of having two operators in the core categories.”
MacGowan said the company aims to deliver a strong flavour of New Zealand in its store, exemplified by a zone called Pure NZ. This houses health and wellbeing products from Anoint Skincare, CtoMi, La’Bonic NZ Organic Skincare, Seedling, Royal Bond and Pure Shade as well as Three Peaks Manuka Honey, House of Chocolate and Zealong Tea Estate.
MacGowan noted: “We have done destination merchandise very well in places like Cyprus with Kypriaka or in Dublin with Irish Memories. This new concept shows what we can do in a premium way in New Zealand. Our range of items shows pride in New Zealand and adds Sense of Place.”
The Loop Duty Free, New Zealand General Manager Tom Byrne said: “It is important for us to leverage the New Zealand brand, which has a great reputation. Here we have the best of New Zealand in one concept, with health and wellbeing to the fore.”
MacGowan added that the additional space offered more room to showcase international brands effectively. The offer and execution in skincare and cosmetics stand out in particular, he said.
“We have a much stronger brand line-up than we have ever been able offer here,” noted MacGowan. “We have given a lot more space to the premium brands we wanted to showcase. In the first few days since opening we have registered strong double-digit growth compared to the previous store. We can leverage our expertise with the PRC Chinese consumer, especially FITs, in areas like skincare. We have plugged some gaps in the offer and will be very competitive on skincare, focused on having the best staff and approach to the category.”
He added: “We have introduced our signature The Whisky Collection and will develop categories such as craft gins in spirits. We have a high-quality new sunglasses zone and we have a fine consumer technology offer, with great value and a wider range. It’s another area in which we can show a point of difference.”
ARI can exclusively offer consumer technology hardware under the dual operator model. The offer has been boosted with products from brands including Apple, Samsung, Sony and GoPro and others. New items include Star Wars Sphero droids and Propel drones.
Byrne said that the full departures opening would come with further brand additions and category development. Confectionery will deliver further personalisation early in the new year, while premium fragrances will also be rounded out by new additions.
A focus for coming weeks and months, ARI added, will be to improve messaging and wayfinding in the store. For both The Loop and Aelia Duty Free, this is a priority given their close proximity (separated by a 4m aisle) and the possibility for customer confusion – many don’t recognise that there are two separate retailers.
Byrne added: “We will put a big focus on promotions and themed events and festivals to build interest and attract customers. We will also maximise the shop & collect opportunity to allow shoppers to make the most of their full allowance. That’s important when we have repeat business as Kiwis travel more and more. Areas such as The Whisky Collection can make an impact in creating excitement and theatre too.”
