IRAQ. Iraq Duty Free has opened a renovated arrivals store at Baghdad International Airport featuring a new liquor area – reintroducing the category after a 13-year absence. The retailer recently received government approval to sell the category.
The renovation is the first of a US$2 million overhaul of seven duty free stores under the umbrella of Iraq Duty Free parent company Financial Links. The retailer is the sole duty free retailer across Baghdad, Basra and Sulaimaniyah International Airports – where it is reintroducing wines & spirits as part of its investment. Before the category was banned by government in 2005, it was the second biggest after perfumes & cosmetics, Iraq Duty Free said.
We noted the planned reintroduction of liquor in a feature on Iraq Duty Free in the MEADFA Guide, published in January. In November 2016, Financial Links renewed its contract with Iraqi Civil Aviation Authority and Ministry of Transport to operate duty free exclusively at Baghdad and Basra international airports until November 2029.
Iraq Duty Free has four shops at Baghdad Airport across 627sq m and two shops at Basra Airport over 300sq m.
“We expect that liquor will be one of the leading factors of growth in 2018 due to the high demand from our consumers,” – Iraq Duty Free Assistant General Manager Ali Basim
The Baghdad Airport arrivals store, which opened in March in the Nineveh Terminal, has expanded from 100sq m to 135sq m, with 20% of the space allocated to liquor. Other top categories are split as follows: 35% to perfumes & cosmetics; 25% confectionery; 15% tobacco (and 5% to storage).
The category splits are part of a new store concept, which includes private space for consumers to purchase liquor.
“We expect that liquor will be one of the leading factors of growth in 2018 due to the high demand from our consumers,” Iraq Duty Free Assistant General Manager Ali Basim told The Moodie Davitt Report.
The Nineveh Terminal caters mainly to Iraqi Airways passengers; mostly locals and some expats. The next renovation is set to take place in the Nineveh departures store, followed by the Babylon Terminal arrivals store, which caters to international flights.
The renovations are designed to offer passengers a better shopping experience and to lift penetration and boost sales. Iraq Duty Free is aiming for a +50% increase in sales at the new Baghdad arrivals store.
“Our shops are considered out-dated and not reflecting the premium shopping experience that our frequent passengers are looking for. The renovation [is aimed at] uplifting the level of shopping experience for our consumers in line with the expansion of the brands assortment and increase in passengers,” said Basim.
The retailer is expanding its focus on categories such as jewellery, watches and beauty with new brands in the pipeline.
“The digital element is considered one of the crucial tools in retail business. We took this important factor into consideration within the renovation plan by integrating multiple digital screens to highlight all new launches and activities which will take place at our shops in the future,” he added.
The retailer is also extending its Iraq Duty Free website services to offer click and collect.
According to Basim, Iraqis are high spenders and seek out new premium products and brands in duty free. “We have other nationalities from all over the world passing through our airports to visit the holy places in Iraq as religious tourism is one of the main [sources of] income for the country. On the business side, we have the frequent investors from Europe and the USA but these are less than 10% of our passenger portfolio in Baghdad,” he added.
“Hopefully with a more stable situation in terms of security we can expect more nationalities to come as security is still the main driver and [consideration] to visit any country.”
Gallery: Grand opening event of Iraq Duty Free Nineveh Terminal arrivals store
Iraq Duty Free and Baghdad International Airport officials inaugurated the new the arrivals store in the Nineveh Terminal on 28 March.
