Norwegian arrivals business exceeds expectations

John Rimmer

4-Aug-2005

The new arrivals business in Norway has been stronger than expected in the first month of trading, according to Travel Retail Norway partner Gebr Heinemann

Travel Retail Norway's new arrivals duty-free store at Oslo International airport has performed beyond forecasts since opening on July 1, according to partner Gebr Heinemann. In an exclusive interview published in DFNI August 1, Heinemann's co-owner Claus Heinemann and director Raoul Spanger revealed that even the 350sq m (3,770sq ft) permanent arrivals outlet, due to open in November, may not be big enough to fully tap the market's potential.

"Sales are surprisingly high," said Spanger, "but the shop is too small and the operation is a logistical nightmare. Even the new permanent store will not be big enough."

The temporary 120sq m (1,290sq ft) outlet stocks best-sellers in all product categories, and Spanger said that liquor and wines had proved particularly popular. He added that results suggested that the business was coming from new customers rather than cannibalising sales at departures or at other destinations, but said that Heinemann would have to examine the effects more closely before making conclusions.

He said: "Since opening the business has proved to be bigger than we expected. This prompts the question: where is the business coming from? Other locations in our portfolio could be affected, such as Frankfurt, Berlin or Hamburg. Nevertheless, results so far suggest that we are attracting spend from people who didn't buy before."

Heinmann, in partnership with local domestic retailer Esthetique Norge, runs Travel Retail Norway outlets at Oslo, Bergen, Kristiansand, Trondheim and Stavanger airports. It opened arrivals outlets at all airports last month after the government passed legislation allowing duty-free shopping on arrival.

Read DFNI's exclusive interview with Heinemann and Spanger

 

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