Baltona Duty Free has inaugurated its new duty-free operations at Lennart Meri Tallinn Airport in Estonia yesterday.
A year-long renovation programme concluded on June 1, culminating in the opening of three duty-free stores across 1,000sqm in what is referred to as ‘the world’s cosiest airport’.
Tallinn Airport CEO Piret Mürk-Dubout and Baltona CEO Piotr Kazimierski cut the ribbon to open the new store
The Flemingo International subsidiary was awarded a seven-year, exclusive contract to operate duty-free at the Estonian destination airport in 2017.
Baltona, which took over the contract from incumbent operator Lagardère Travel Retail, announced details of the contract on stage at last year’s DFNI Conference in Tallinn.
“The effect of this cooperation is not only a design masterpiece but it is also a retail space that speaks to passengers,” says Kazimierski (left)
The largest store is around 800sqm and redesigned as a walkthrough. The two other stores (totalling 180sq m) will provide last-minute shops for transferring and non-Schengen passengers.
The shop designs combine the Estonian connection with open outdoor spaces and indoor cosiness, within an ‘enchanted forest theme’. Developed by The Design Solution, the shops utilise natural materials, including the wooden elements for which Estonia is known.
The stores offer core categories of perfumes and cosmetics, confectionery and liquor, but also fashion accessories and local specialties. Featured local brands include: Baltic-based spirits business Liviko whose brands include Vana Tallinn liqueurs, Crafter’s Gins and Viru Valge vodka; Estonian confectionery from Kalev; Finnish skincare from Lumene; Moe Distillery vodka; and A Le Coq beer.
Baltona CEO Piotr Kazimierski hailed the successful partnership with Tallinn Airport and The Design Solution on the project: “I deeply trust that the effect of this cooperation is not only a design masterpiece but it is also a retail space that speaks to passengers.”
Tallinn Airport CEO Piret Mürk-Dubout added: “We are pleased to enter into partnership with Baltona Duty Free after a meticulous planning process to upgrade the duty-free retail facilities at Tallinn Airport.
“The ‘cosiest airport’ is currently undergoing considerable changes and we believe that this new retail configuration will enhance the positive shopping experience for our passengers even further.”
She added: “For us it is very important that the main duty-free shop will offer not only core categories of perfumes and cosmetics, confectionery and liquor, but also fashion accessories and local specialties. The uniqueness of the shop lies in the tasting zone and relaxing spots, that also matches the ‘cosiest airport’ concept.”
Destination airports are ‘important and attractive’
Since 2011, Baltona Duty Free has expanded to eight countries outside Poland and operates 50 outlets.
Kazimierski said the company was pleased to have won the concession, not only against strong competition, but one that best matches the company’s strategy.
“When you operate out of smaller or destination airports, to make good business out of it, you need to position the business in a slightly different way to the really big players.
Baltona sees a niche in small, destination airport concessions, says CEO Piotr Kazimierski
“You must look for optimisations and savings, and the effect of scale comes slower than when you have a portfolio of big concessions. But you also have to be closer to the business and appreciate the very unique aspects of those destinations.
He added: “Some elements of the growth strategy have been changing, but the core focus on destination airports remained the same. We saw – and still see – a niche there and our approach is to put many of those scattered locations under one umbrella. Many of them are too small for bigger players, but they are important and attractive.”
Enchanted forest
“The airport talks about the world’s cosiest airport, and for me this is the essence of what we have tried to achieve with the store designs for Baltona,” said The Design Solution’s Nick Taylor.
“When we started coming up with designs for the stores, we very quickly found that Estonia is a nation in love with the outdoors, and has a real sense of adventure. Our concept for the stores came from these human emotions, coupled with the idea of cosiness, and the concept of the ‘enchanted forest’ was born. We wanted the store design to sprinkle a little bit of Estonian magic into the passenger’s day – a seamless journey punctuated with moments of delight and relaxation.
“To do this, we started to look at ways we could create small lounge spaces anchoring each category heart. These became
warm and soft cocoons where passengers can relax and connect with the exterior through glazed sections of façade.
“We developed a natural palette of light timbers, with birch and plywood edged detailing and local furniture and found objects will feature throughout. In parallel, there is never a doubt in our mind that every one of these 700 square metres has to perform commercially or else we have failed.
“As part of this process the partnership between the 3 of us – designer, operator and airport – has been a refreshing dialogue rather than series of instructions. Together, we have been able to synergize the transition from security into the store and beyond and maximised the retail space by relocating toilet facilities. Issues are resolved jointly – It’s been a fantastic partnership, and we are extremely proud of the results.”
