ARI venture and Duty Free Caribbean win Barbados space

Gavin Lipsith

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The two main winners in the tender to run duty-free at Grantley Adams airport are a joint venture between ARI and Caribbean Airways and Dufry-backed Duty Free Caribbean

A joint venture between Aer Rianta International (ARI) and Caribbean Airways has been awarded several concessions at Barbados Grantley Adams International airport following a drawn-out tender process originally due to be concluded last May. The joint company has signed a five-year contract, with the option to extend for two years, and is aiming to open in late 2006 or early next year. Dufry Group-backed Duty Free Caribbean has also secured space at the location.
 
In departures the ARI partnership, operating as Caribbean ARI, will run two liquor and tobacco outlets, holds the exclusive departures fragrances and cosmetics concession and will also operate one fashion and accessories store focusing on sunglasses and a confectionery outlet. In the arrivals area its Beach Hut will sell local gifts and souvenirs. The venture will adopt the Runway Duty Free Barbados retail fascia.
 
ARI director general Eamon Foley told RavenFox.com that the company planned to have a start-up team on location by the end of the month. "We are really pleased to have acquired the fragrances and cosmetics concession as we will have exclusivity in departures. In liquor and tobacco, competition will dilute the business but we will have a good offer. This is a new area of business for us as other acquisitions we've had recently have been extensions or add-ons to existing business. With almost 50% UK traffic, Barbados has an extremely attractive profile."
 
Foley said he was happy to have partnered Caribbean Airways, which currently operates the sole arrivals store at Grantley Adams. He said the two companies plan to extend the partnership to other airports across the region as opportunities become available.

Meanwhile Duty Free Caribbean, the 60:40 joint venture between Dufry Group and local retailer Cave Shepherd, has secured space in both arrivals and departures, pending signing of its contract. The company will open a 1,022sq ft (95sq m) Colombian Emeralds jewellery store and a 400sq ft (37sq m) Bijoux Terner store in the departures area, while in arrivals it will take on the arrivals concession previously held by Caribbean Airways, with its well-known domestic retail brand Cave Shepherd offering liquor, tobacco and other duty-free categories in a 620sq ft (58sq m) outlet.

Duty Free Caribbean CEO Peter Allan told RavenFox.com: "Traditionally the arrivals business has not been very strong, but because of the concept we presented and the product range we will offer we are confident we will see good sales. Cave Shepherd is well known among locals and also has a strong tourist following, and the location of the new store is also very central."

RavenFox.com understands that local companies will compete with Caribbean ARI for liquor and tobacco sales in the departures area.