Lagardère Travel Retail has launched the first phase of its DF&TR operations at Riyadh King Khaled International Airport Terminals 1 and 2.

The left-hand side of the 1,040sq m T1 store opened on Thursday 24 May, while the 1,000sq m T2 outlet began trading on Sunday 27 May.

The right-hand side of both stores is due to open in July/August.

Terminal one is home to several airlines including Turkish Airlines, Etihad Airways, Garuda Indonesia and Jet Airways. Terminal 2 houses the likes of Saudia, Flynas and Air France.

A grand opening of the entire operation will take place in the coming months, but TRBusiness understands no date has been set.

PASSENGER FORECAST

The airport is expected to handle 25.93 million passengers in 2018 with international traffic comprising 25% of total traffic.

As reported, the retailer won the contract in 2016 as part of a consortium, comprising Saudi Airlines Catering Company and Arabian Ground Handling Logistic Company. The business is spread over two locations in Terminals 1 and 2.

A second contract in Saudi Arabia (King Fahd Airport in Dammam) covering 1,834sq m soon followed, which was preceded by another key contract gain in Jeddah.

Its presence in the region will be expanded when the new Abu Dhabi Airport Midfield Terminal finally opens next year having secured one the core DF&TR concession in 2015. This preceded the capture of the F&B contract in 2016.

Lagardère Travel Retail, Executive Vice President, Marketing and Digital Stéphanie Metz-Thevenod (below) told TRBusiness that both Aelia Duty Free stores have ‘pretty much the same structure’ and are like twin outlets.

She added: “We have opened the section which is more dedicated to regular Saudi consumers with regular spending habits seeking a specific type of product.

“There is confectionery, food and toiletries available, more accessible/affordable skus and a strong emphasis on promotions.”

The right-hand side of the stores will be mainly dedicated to perfumes and cosmetics (premium brands such as Chanel and Dior) and fashion. It will be aimed at the wealthier passengers from the region.

“Here, there will be a section of perfumes comprising Oud-based scents which are synonymous with the Middle East.

“There will also be a gold section which will help create that premium feel.”

Emphasising the unique nature of both stores, Metz-Thevenod remarked: “The two stores are based on our four fundamental Aelia Duty Free pillars.

“These are The Art of the Gift, Facilitation, Care and Nowhere else. These are linked to our retail vision. Our ability to focus on the Oud element, bring what I call more accessible products and promotions and offer high-end and more accessible low-end items makes these stores unique.”

In terms of the retailer’s Saudi Arabian business in general, she concluded: “We are now operating across all three locations in Dammam, Jeddah and Riyadh. Dammam is performing particularly well and exceeding our expectations, while Jeddah is going according to plan.”