“Reiterating our commitment to Sri Lanka” – Flemingo CEO Atul Ahuja welcomes Colombo contract victory

Flemingo logoSRI LANKA. Flemingo Duty Free CEO Atul Ahuja has welcomed the retailer’s recent success in securing the major duty free concession at Bandaranaike International Airport in Colombo and spelled out bold plans to extend the business.

Atul Ahuja
Atul Ahuja: “This contract win reiterates our commitment to Sri Lanka.”

As revealed by The Moodie Davitt Report, Flemingo was awarded the airport’s main five-year duty free concession earlier this month. A second, smaller contract has been retendered with bids closing on 19 April.

Ahuja said: “This contract win reiterates our commitment to Sri Lanka. We see great opportunity and growth potential and with our experience in this region we are excited to build the business further.”

Bandaranaike International has a split concession model but until now Flemingo has occupied secondary space to the major concessionaire World Duty Free (now owned by Dufry).

The new concession is for five years, effective 15 March. Under the terms of the contract, Flemingo will move to prime locations in both the arrivals and departures lounges.

Departure space will increase by +65% to 5,060sq ft while the arrivals area is initially unchanged. However, the arrivals hall will soon be refitted and the space for duty free extended by year-end.

Flemingo will expand all product category offers, it promised, especially in beauty and confectionery. As part of its contract, the retailer will refurbish the smoking lounge, which will be accessed through the departure shop.

The new facilities are expected to open by 1 July, until when Flemingo will operate from its current space.

Flemingo Colombo 3 Departure
Flemingo has operated at Colombo Bandaranaike Airport for several years but always in secondary space to its rival World Duty Free Group (Dufry). Now it will enjoy primary positions in both departures and arrivals.

Flemingo Columbo 2

Tourism & Travel is booming in Sri Lanka, the company noted. Bandaranaike International Airport handled 9.47 million international passengers in 2016, up by +14%. Importantly from a retail perspective, the Chinese emerged as the second-biggest nationality after Indians.

The government’s development programme is resulting in “massive” infrastructure growth, Flemingo commented, with close to 8,000 city apartments planned. Several new hotels have opened recently with more to follow over the next two years.

Flemingo has been operating duty free stores at Bandaranaike International Airport since November, 2011 and has a strong loyalty base of 23,000+ members in its privilege programme. The Flemingo Group operates in over 30 countries and onboard 64 cruise ships. The group has over 200 shops worldwide. In the Indian sub-continent, Flemingo operates in 13 international airports.

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