LFP earmarks Angola for growth in 2007

Tina Milton

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Lojas Francas de Portugal plans to grow its presence in Angola where it recently opened an arrivals shop at Luanda International airport

Lojas Francas de Portugal (LFP), a joint venture between The Nuance Group and Portuguese airline TAP Air Portugal subsidiary TAPGER, has earmarked Angola for growth in 2007. LFP retail operations director Luis de Carvalho told RavenFox.com it was a country he expected to “come alive” this year by gaining extra space in better airport locations.

The company gained the retail management contract at Luanda International airport in 2005 and in the third quarter of 2006 opened a 25sq m (260sq ft) arrivals duty-free shop to complement its 210sq m (2,259sq ft) main duty-free store, which operates under the Neutral Duty Free by LFP brand.

“The arrivals concept is a test and we sell the same assortment of products as in the main shop such as fragrances, liquor and tobacco,” said Carvalho. “However it is not in the best position in the arrivals building and we would like it to be located well before the baggage area. Angola is still a very young business and we have now appointed a local manager to oversee operations there. “He said that LFP is also monitoring opportunities at the Cape Verde archipelago in Angola where Aldeasa operates five small stores.

Although LFP is still finalising the year-end sales figures for 2006, double-digit increases over 2005 are expected. “It was a very good year mainly owing to a rise in passenger numbers. In Portugal we’ve had a very strong year in Oporto, where we have a new airport terminal and at Faro airport, where we have far better space.”

The retailer is still negotiating with airport authority ANA Aeroportos de Portugal about the new location for its main store in Oporto. It operates a 385sq m (4,142sq ft) temporary shop but has plans to build a new main store once the location has been agreed.

“In the old terminal we were not very well located but in the new terminal we feel like the passenger mood has changed. We have also entered a proposal for a Fashion Gallery store," explained Carvalho.

ANA is still finalising its plans for Lisbon harbour, which is a popular stop for cruiseships. Carvalho said: “The government has yet to decide how or when to develop Lisbon harbour, but we hope to hear more about the project and the retail opportunities before the summer.”

LFP operates stores at Lisbon, Faro and Oporto airports in Portugal, at Ponta Delaga, Horta and Santa Maria airports in the Azores, and Luanda airport in Angola. It also operates the inflight duty-free programmes on board TAP Air Portugal, SATA International and White Airlines.