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Rail outlets to double Sky Connection turnoverRail outlets to double Sky Connection turnover
Gavin Lipsith
23-May-2006
Four outlets at the new Lok Ma Chau rail crossing between Hong Kong and mainland China offer strong prospects for the liquor and tobacco retailer to grow its field of expertise as well as its revenue
Sky Connection CEO Baker Salleh has predicted that the company's new contract at the Lok Ma Chau rail crossing between Hong Kong and mainland China could double the retailer's turnover if it meets its potential, DFNI Asia can reveal. The company was awarded more than 18,000sq m (193,680sq ft) of retail space at the new crossing, due to open late this year, under a five-year master contract granted by the Kowloon Canton Rail Corp (KCRC) that will allow it to sell all merchandise categories.The new facility had the capacity to handle 250,000 passengers a day, and Salleh said the contract allowed Sky Connection to show itself as a "multi-category, multi-transport mode retailer", with outlets at Hong Kong's land borders, seaports and airports. The company will operate two departures outlets of about 820sq m (8,823sq ft) and two arrivals stores of 550sq m (5,918sq ft) each.
The stores, which are located so that all passengers will have to pass between them on both arrival and departure, will feature a broad mix of categories beyond the traditional liquor and tobacco offer featured at Sky Connection's Hong Kong International airport stores. Other categories will include fragrances and cosmetics, packaged foods, travel accessories and electronics.
Salleh told DFNI Asia that initial response from suppliers had been strong. "A lot are very interested, especially about the size of the stores, which are far bigger than most airport outlets, particularly in Asia. Given their size and the expected business potential we hope to be able to create a store of first-class international standards, and we have the space to handle all categories and do them justice."
For more details on Sky Connection's plans at Lok Ma Chau, see DFNI June 1, out soon.
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(20-Jun-2006) - The operator gains another off-airport contract following its recent victory at Lok Ma Chau rail terminal
(15-Dec-2005) - An exciting opportunity emerges to serve passengers using one of only two rail links between Hong Kong and mainland China
(1-Jun-2006) - HONG KONG. Sky Connection has secured a five-year deal to operate arrivals and departures outlets at the new rail crossing between Hong Kong and mainland China
(15-Dec-2005) - HONG KONG/CHINA. The Kowloon-Canton Railway Corp (KCRC) is set to launch a tender for duty-free operations at Lok Ma Chau station on the border between Hong Kong and mainland China, DFNI can reveal. The five-year contract will start when the company opens the new Lok Ma Chau spur line, scheduled for completion in November 2006
(1-Oct-2007) - The company confirmed that it has been granted exclusive rights to retail at the rail terminal