IDFS sales benefit from JTI smoking lounges

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The close proximity between the supplier’s sponsored smoking lounges and retail outlets at Moroccan airports has aided International Duty Free Shops’ tobacco sales

Moroccan retailer International Duty Free Shops (IDFS) has highlighted the opening last December of Japan Tobacco International (JTI) smoking lounges at Casablanca Mohammed V, Marrakech Menara and Agadir Al Massira International airports as having a positive effect on business.

IDFS has 942sq m (10,135sq ft) of retail space at Casablanca Mohammed V airport terminal one, a 441sq m (4,745sq ft) shop at Marrakech Menara, a 377sq m (4,056sq ft) outlet at Agadir Al Massira and a 29sq m (312sq ft) shop at Fez. The retailer also operates a 96sq m (1,033sq ft) site at Tangier Boughaleb airport, a 115sq m (1,237sq ft) store at Oujda, a 31sq m (333sq m) outlet at Ouarzazate and a 484sq m (5,209sq ft) diplomatic site in Rabat. It also runs stores in Casablanca T2 and T3, Rabat T2 and Marrakech T2. Each shop devotes about 25% of space to tobacco.

Marketing and merchandising director Felicisima Enriquez said: “Passengers buy cigarettes as soon as they see the lounges. Our store is very near the lounge in Casablanca T2 and at the side of the lounge in Marrakech. The smoking lounges have definitely helped increase sales and continue to satisfy our smoking customers. As the tobacco market continues to grow and more tourists pass through our airports, sales will rise further.”

Enriquez is keen to build on a successful 2007 in which tobacco accounted for 42.4% of total sales, with Marlboro, Benson & Hedges and Lucky Strike the most popular brands. She told DFNIonline: “Not only did we achieve double-digit sales growth compared with the previous year, but we also opened new shops in Agadir in March and Marrakech in June. One of the main challenges for the year ahead is coping with and trying to prevent situations when suppliers run out of stock and shipments are delayed. We also plan to open a new shop in Tangier later this year.”

A new terminal is set to open at Marrakech Menara this year. “The merchandise assortment may be the same, but we will have a much bigger space to work with,” said Enriquez. “We have an excellent relationship with the airport authority, which has shown its support by giving us the best space in Agadir and Marrakech.”