Eraman and DR Group awarded arrivals contracts

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Two arrivals duty-free contracts have been awarded to leading local retailers at Kuala Lumpur International airport (KLIA).

Malaysia Airports subsidiary Eraman will operate a fragrances and cosmetics outlet, previously run by SeriAgate, while DR Group's subsidiary Chocolate Sales & Supplies will operate a chocolate concession in the same area, just after immigration at KLIA. These companies join Sriwani, which offers liquor and tobacco in the location.

Arrivals duty-free has been a struggle for operators since KLIA opened in 1998, due to the positioning of the stores in relation to immigration counters, but the airport authority told TRW today it expected to see improvements with the new operators, and also through better signage and marketing of the arrivals shopping area.

Meanwhile, the authority plans to tender several new spaces in the piers of the departures satellite terminal, close to departure gates. But this has met with mixed reaction from operators. One said: "Why add new spaces when there are not enough passengers for the existing ones. This will just dilute the spend."

• Full details on these stories will appear in the next issue of Duty-Free News International.