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Duty Free Stores New Zealand soars Trans-Tasman

Media release

 

4 December 2009

 

Duty Free Stores New Zealand soars Trans-Tasman

The largest New Zealand-owned duty free store operator, Duty Free Stores New Zealand, is spreading its wings with major investment on both sides of the Tasman.

The company, which operates at five airports in Australia and New Zealand, has negotiated another eight years to its contract at Gold Coast’s airport at Coolangatta. The deal coincides with the unveiling of a new Departures store at the Queensland airport following the opening of an Arrivals store in July.

Meanwhile, as the company celebrates landing the duty free store contract at Rotorua International Airport, it has lodged a tender for the Christchurch International Airport duty free concession.

Grant Archibald, CEO of Duty Free Stores New Zealand, said the bid is part of an aggressive expansion strategy by the Lower Hutt-based company as it enjoys significant growth in its existing Trans-Tasman operations and on-line business.

 “As the largest New Zealand-owned duty free store operator, we are excited about the opportunities in both Australia and New Zealand. We have a strong future in both countries, particularly considering the growth across the Tasman.”

The online side of the business is now the single largest part of the company’s New Zealand operations and accounts for a third of New Zealand revenue, said Mr Archibald.

A growing number of passengers now choose to pre-order goods online and arrange collection at Christchurch, Wellington and Auckland airports and Duty Free Stores New Zealand’s existing concessions.

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“We expect significant growth in our on-line retailing with 50,000 New Zealand customers currently on our database.”

Duty Free Stores New Zealand’s turnover was up 11 % for the year ending March 2009. Sales in the company’s Australian stores were up 38 % in the corresponding period. For the first half of the financial year ending March 2010, same stores sales were 19 per cent ahead of the same period last year.

“Our duty free concessions at airports such as Dunedin, Gold Coast and Hamilton, where the contracts have been extended, show how far we have come since the company was established almost 25 years ago,” said Mr Archibald.

“Duty Free Stores New Zealand also won the duty free concessions in Adelaide and Gold Coast, one of the fastest growing airports in Australia, against international competitors and these airports are delighted with the results.”

The company’s bid for the Christchurch International Airport duty free contract will be based around its impressive track record in the city, said Mr Archibald.

“We are already the second-highest selling duty free retailer through our on-line business and we pride ourselves on our nimble and flexible operation.

“Duty Free Stores New Zealand is keen to grow the business both within New Zealand and Australia and potentially further afield into Asia,” said Mr Archibald.

“We will vigorously tender for any new duty free concessions that come up within the region that fit with our business model.”

Duty Free Stores New Zealand is widely regarded as industry pioneers, having changed the way duty free shoppers shop by introducing walk-through duty free stores in airports in Australasia, and spearheading the launch of on-line duty free retailing in the region.

ENDS

 

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