Oslo sales beat tender expectations

Gavin Lipsith

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Nearly six months after the retailer's contract began, sales at the renovated retail area at Oslo Gardermoen airport have surpassed the forecasts set in Travel Retail Norway's bid submission

As Travel Retail Norway prepares for the official opening of its Oslo Gardermoen airport stores, the Gebr Heinemann joint venture has reported that sales have been far stronger than the group anticipated in its bid for the contract last year. Travel Retail Norway managing director Pål Wibe told RavenFox.com that the new floor layout in the expanded area had improved both penetration and sales since the company took over the location from former incumbent SAS Trading.

The company, which will officially open the Oslo operation on June 13, has also opened a 400sq m (4,300sq ft) Travel Value fragrances and cosmetics store at the airport's domestic terminal. Wibe said the new concept is also performing ahead of budget.

Meanwhile, the Norwegian parliament is debating legislation to allow arrivals duty-free shopping this month. Wibe confirmed that Travel Retail Norway expects a positive decision and is going ahead with preparations to open a temporary 200sq m (2,150sq ft) outlet on July 1 if legislation is passed. The company's arrivals offer will be based on the best-selling items in each product category, and a permanent 400sq m store will be opened this autumn.

"We have very high expectations of the arrivals business," said Wibe, "and the decision is eagerly awaited by Norwegian customers. We have had several enquiries from customers in our other stores already."

Travel Retail Norway is also making progress at other Norwegian airports. At Trondheim the company opened a walk-through store in April, doubling the sales area of the previous outlet. Wibe told RavenFox.com that initial sales were running at 30% above budget. He said that the Trondheim store would form a model for outlets at Bergen and Stavanger airports when they are renovated next year.

Travel Retail Norway is a 50:50 joint venture between Gebr Heinemann and leading domestic cosmetics retailer Esthetique Norge. In a tender last year the company outbid SAS Trading and French operator Aelia to secure the seven-year contract, with an estimated annual turnover at Oslo alone of NKr1bn ($145m).