Lojas Francas de Portugal secures landmark Angola contract

Gavin Lipsith

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The Portuguese operator says the management contract at Luanda is just the start of its 2005 development plans

Portuguese retailer Lojas Francas de Portugal (LFP) has boosted its international business with a management contract for duty-free retail at Luanda airport. Under a five-year contract with local duty-free retailer MITC Investments, the company is to supply all goods to the store and will place a director there to deal with commercial aspects of the business, with MITC overseeing the stores operations and paying concession fees to the airport.

LFP retail operations director Luis de Carvalho told RavenFox.com that the contract offered considerable opportunities given the growth of travel to the country, and said that the 230sq m (2,474sq ft) store would feature a product mix focused on fragrances and cosmetics, tobacco, liquor and gifts in that order of importance.

"The traffic there is strong and diverse," said Carvalho. "It ranges from holidaymakers to expatriates working in South Africa to students from Angola studying in Portugal. There may be an opportunity to create a more upmarket offer but we will examine that option at a later date."

Carvalho told RavenFox.com that the Angolan contract is just the start of LFP's development plans for 2005. The company?a joint venture between The Nuance Group and TAP Air Portugal subsidiary TAPGER?is to open new stores at Oporto airport, which is being redeveloped this year to accommodate the growth of low-cost carriers. The company will open a 700sq m (7,532sq ft) store in the intra-EU area and a 200sq m (2,152sq ft) store in the non-European departures lounge.

"Portugal is very excited about the new airport development and I believe that the growth here will be very strong," said Carvalho. "Ryanair has just started flying there and the new facilities will attract more low-cost carriers.

Elsewhere Carvalho said that LFP is in talks with airports in the Azors Islands, where it is already present. The company is negotiating for space at Santa Maria airport, one of the busiest tourist airports on the islands, and said that it would examine other locations too.