Duty Free Store loses Keflavik electronics contract

Emily Pacey

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Incumbent retailer Duty Free Store will focus on core categories.

Two domestic retailers will take over the electronics and multimedia categories at Keflavik International airport from April. Leifur Eiriksson Air Terminal (LEAT) retail subsidiary Duty Free Stores currently manages the categories, which together were the fastest-growing sector for the retailer in 2006, with sales rising by 25%.

Elko will operate a 250sq m (2,690sq ft) electronics store in the modernised and expanded terminal, while Skifan will run a 100sq m (1,076sq ft) multimedia outlet selling DVDs, CDs and games. The contracts run for seven years.

LEAT duty-free director Haskulder Asegeirsson told RavenFox.com: “There are a few advantages to having these specialist retailers take over these categories. The main reason is that we want to make our traditional duty-free business more focused. Duty Free Store will now focus entirely on the four core categories of liquor, tobacco, confectionery and cosmetics and fragrances.  Also, these two domestic retailers list the biggest international brands.”

Duty Free Stores managing director Hlynur Sigurdsson said: “The domestic electronics retailers have more expertise than we do, so will be able to provide that. Also, electronics demands a higher service level that most other categories. Being specialists in electronics they also might be able to get a better margin on the products than we could.”

Duty Free Store is increasing the size of its departures outlet to 1,150sq m (12,380sq ft), which will relocate to the first floor. The store is due to open in March.

See DFNI January 15, out soon, for more details.