Motta plans new store amid controversy over rival

Print Article E-Mail Article

Motta Internacional is set to inaugurate a renovated store at Maiquetía International airport in the Venezuelan capital Caracas in early April as a rival company, supplied by Duty Free Americas, plans a duty-paid opening.

Motta Internacional, exclusive duty-free concessionaire at Maiquetía International airport in the Venezuelan capital Caracas, is set to inaugurate a renovated 1,100sq m (11,800sq ft) store at the location in early April. The move comes as a rival company, supplied by Duty Free Americas, plans a duty-paid opening.

Chief operating officer Erasmo Orillac said: ?We see great sales potential in Caracas and we believe that our newly renovated shop will be one of the best in the region. It's always difficult to assess the short-term situation because of the regional economic problems but we see a solid future over the next few years. We hope to have the new store open by the second week in April.?

The move comes after a difficult year for the operator. According to Orillac new exchange regulations introduced last year have made life difficult for the duty-free shop operator. ?The new controls introduced in early 2003 have led to stock problems but a new import system for the duty-free store is in place since last November and the supply situation is almost back to normal. We have worked through the difficult period and our relationship with [children's charity] the Fundación del Niño is stronger than ever.? Motta operates the stores on behalf of the charity, which owns the trading lease.

Orillac also commented on the imminent opening of a duty-paid store at the location, by a company called Mac Trading, in which US-based Duty Free Americas is involved. In seeking to clarify supplier concerns that there are rival duty-free operators at Caracas, he said: ?The only company that can operate in Maiquetia is the Fundación which has a thirty-year contract through to 2026 and Motta was named the exclusive concessionaire in June 2002. Any other retail activity that opens in the airport must be duty-paid.?

Motta has sent its suppliers a letter clarifying its status as exclusive duty-free operator. Duty Free Americas did not want to comment.