James Richardson eyes opportunities around Israel

Gavin Lipsith

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The Australia- and Israel-based retailer is examining potential locations within a three-hour radius of its flagship Tel Aviv Ben Gurion airport stores

James Richardson is to examine airport retail opportunities around its Israeli base, the company has revealed. Duty-free division chairman Garry Stock told RavenFox.com that the company's quest for new business in the region, initiated following an extension to its crucial Tel Aviv Ben Gurion airport retail contract secured last year, could take it to the Middle East, Africa and Eastern Europe.

"We will be looking at destinations two or three hours away from Tel Aviv where we feel we can make a difference," said Stock. "We are not interested in taking on the big established retailers—instead we will look at those locations where we feel we can offer something distinctive."

The company, along with local partner Abraj Al-Muthanna, placed a $7.4m bid for the recent duty-free tender at Kuwait International airport, which was won by Aldeasa and That Al Salaseel with a bid of $17.47m.

"We felt that the shop at Kuwait was not reflective of the standard of retailing in Kuwait or the status of Kuwait in the region," said Stock. "We had a strong partner who operated the store before the 1991 Gulf War and we put in a responsible bid, just above [incumbent retailer] Habchi & Chalhoub's. We were outbid by another sensible proposal [Dufry Group and Mohamed N Al-Hajery & Sons' $8.21m offer] and by a high bid, and we wish the winner best of luck."

Meanwhile the company is examining opportunities in Asia/Pacific after securing contracts for three Australian downtown stores—in Perth, Melbourne and Adelaide—due to open late this year. Stock confirmed that the company was interested in the tender currently under way at Wellington International airport, and said he was eagerly awaiting the licence terms for duty-free retail at Sydney Kingsford-Smith airport, due to go to tender early next year.

See DFNI October 1, out next week, for more on James Richardson's ambitions.