Pleasing progress for JR Duty Free downtown

Gavin Lipsith

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The retailer reports week-on-week increases at its recently-opened metropolitan stores in Melbourne, Perth and Adelaide

JR Duty Free - formerly James Richardson - has reported progressive sales increases at its three Australian downtown duty-free stores in the past two months, driven by growing tourist awareness of the availability of downtown duty-free shopping. Duty-free division chairman Garry Stock told DFNI Asia that the company had launched a "major re-education programme" to let travellers know about the shops in Melbourne, Perth and Adelaide, including projects with ticket agents, tour operators and hotels, as well as direct marketing campaign which he said had yielded strong results.

Said Stock: "We are still working out how to get the best out of the shops and how to increase certain product categories, and like everyone in Australia we found the Commonwealth Games were not as strong as we hoped, but over April and May sales have grown week-on-week and the progress is pleasing."

The company - which also operates at Tel Aviv Ben Gurion airport in Israel and at Israeli ports - is refitting its Perth outlet and has just completed work on its store in Adelaide, which it has recently reoccupied after an absence of several years. Stock said that the retailer would focus on growing the business to its potential at the three existing sites before looking for other airport opportunities, having already expressed an interest in the Sydney duty-free contract currently being tendered. He added that in the future JR Duty Free is likely to focus on building its downtown store portfolio in the southern states of Australia, rather than in Queensland and New South Wales where DFS Group already operates downtown stores.

Melbourne is the biggest-selling location, followed by Perth then Adelaide. Stock said that watches, cameras and electronics were the biggest categories, while fragrances and skincare are also growing as the retailer hones its offer.