Wellington Family Business Forced Out Of Wellington Airport

Wellington-based duty free company Duty Free Stores New Zealand this week advised its customers that it could no longer supply duty free to its Wellington customers following an increase in charges by Australian company JR/Duty Free.

JR/Duty Free, which runs the duty free shops at Wellington Airport, increased the prices it charges other duty free companies to hand out goods at Wellington Airport by 240%.

The move by JR/Duty Free increases the charge to hand out an average bag of duty free goods from $13 to $44 at Wellington Airport, making it impossible for us to compete, said Duty Free Stores New Zealand CEO Grant Archibald.

At Auckland and Christchurch airports, where the airport companies run the passout facility (instead of the duty free operator), charges for passing out an average bag of duty free are around $13.

Duty Free Stores New Zealand sells duty free goods over the internet for customers to pick up on arrival or departure at the airport.

“We deliver duty free to JR/Duty Free the day before a customer collects it. JR/Duty Free put the goods on a shelf and hand them to the customer when they fly in or out of New Zealand. And they are now going to charge $44 for that limited service. It is difficult to see how these charges can be justified,” said Mr Archibald.

“We have asked the Commerce Commission to take a close look at the situation. We think this is what consumers deserve.

“We have also asked Wellington Airport to provide us with separate passout facilities at the airport. Wellington Airport has been a strong and vocal proponent of competition in the aviation sector and our hope is that they will apply this same logic to the duty free sector and come forward with a workable solution.”

Mr Archibald said Duty Free Stores New Zealand’s decision is likely to lead to the loss of up to five jobs from its Lower Hutt team.

About Duty Free Stores New Zealand
Duty Free Stores New Zealand is a family business that has been operating in Wellington for 25 years. Duty Free Stores New Zealand operated the duty free concession at Wellington Airport until 2009.

Duty Free Stores New Zealand has continued to service customers at Wellington Airport through their internet service. The business has grown strongly in recent years as consumers have been drawn to the low cost duty free model and the significant discounts available on duty free purchased online.

ENDS

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