Ground-based stores are no longer part of Malaysian carrier Malaysian Airlines System’s (MAS) retail strategy, RavenFox.com has learned. The company decided not to renew the contract for its Golden Boutique store at Kuala Lumpur International airport when it expired last year, and is to focus on developing its inflight retail business for the foreseeable future.
Senior executive Marilyn Wong explained that the company had made the decision because of restrictions placed on its offer by the airport authority Malaysia Airports. “We were not allowed to sell fragrances or to duplicate our inflight offer on the ground, so we decided not to renew when the time came,” she said. “Ground stores are no longer part of our business and we will not look to open any in the short term.”
MAS achieved a 35% increase in inflight sales revenues last year, driven by the development of its Temptations brochure offer. Although fragrances, cosmetics, liquor and tobacco dominate sales, Wong said that destination products and travel products were gaining sales and that locally-sourced exclusives were also proving popular.