Keflavik to open arrivals mega-store

Gavin Lipsith

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Duty Free Store's new arrivals outlet will cover almost 11,000sq ft when it is opened later this month

Duty Free Store managing dirctor Sturla Edvardsson told RavenFox.com that the company would be focusing on expanding the cosmetics and fragrances departments with the new space while growing all other categories—liquor and wines, electronics, confectionery and tobacco.

"Arrivals accounts for about 45% of our total sales at Keflavik," said Edvardsson, "and the space was too small given the traffic increase in recent years, and particularly with the strong summer traffic forecasts. The new outlet will be the largest arrivals store in Europe, to my knowledge."

Edvardsson added that there were several reasons for the importance of arrivals sales to Duty Free Store's total business. "Our arrivals store is open all day, so whenever passengers arrive they know they can count on it being open. Also, Iceland is heavily taxed on liquor and tobacco, and our customers are mainly Icelandic. We try to offer competitive prices compared with both the domestic market and with other western European duty-free retailers."

The company, which is the principal duty-free tenant at Keflavik airport, also plans to renovate its departures duty-free store as part of the international terminal's expansion, which is due to be completed in time for the 2006 summer season.