James Richardson reports sales drop since terminal move

Gavin Lipsith

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The travel retailer reports that sales at its outlets at Tel Aviv Ben Gurion International airport have dropped 8% since the new international airport opened two and a half years ago

James Richardson has reported an 8% drop in sales at its retail outlets at Tel Aviv Ben Gurion International airport since the new international terminal three opened there two and a half years ago. In an interview with Israeli business website TheMarker.com, James Richardson Tel Aviv CEO Avi Ben Hur said that security pressures and the long distance between the gates and the shops had caused the drop, although the business is now recovering.

Ben Hur said that the retailer—which operates the main duty-free concession as well as sports and fashion stores at the new terminal—expected an 8% increase when traffic first moved to the new terminal. He also said that James Richardson’s costs had risen by 40% since the move.

Ben Hur said: “There was supposed to be a quick [security] check and more stations, and the passengers' free time was supposed to increase. In practice, it dropped to 45 minutes on average. If in the previous terminal passengers were able to visit two to two and a half stores on average, today they can enter only one and a half. This increases competition and harms everyone. The customer used to wander around stores even after the first flight call. But today, because the gate is far away, they run [for the flight] the minute it is announced."

He added that James Richardson, which accounts for 80% of duty-free sales at the Israeli airport, will record $350 million in revenues this year, while profits will again grow following a drop in profits after the move to the new terminal.