Malta focuses on developing commercial activities

The Nuance Group’s new 145sqm walk-through duty free store has been designed to maximise the visibility of the commercial products and create free flows through the shop.

The Nuance Group’s new 145sqm walk-through duty free store has been designed to maximise the visibility of the commercial products and create free flows through the shop.

The official opening of Malta International’s expanded and modernised retail area in June is the result of a collaborative effort with Pragma Consulting and The Design Solution – who were commissioned to support the project through in-depth research and develop the airport’s retail design.

The terminal expansion and refurbishment project was timely for various reasons, as Mario Psaila-Savona, head of non-aviation services, explained: “Our security area had become too small and most contractual agreements with the retail concessions in the Schengen area were coming to a close. This allowed us to be ambitious and carry out a major overhaul of the security and retail areas. We have now doubled our passenger flow to accommodate traffic during the peak summer season.”

Last year €5 million was spent on retail outlets, a further €1 million on catering and €3.5 million on the security upgrade.

According to Robbie Gill, director, The Design Solution, the airport’s criteria for designing the terminal space was to add the required space for security at the departure level and change the passenger flows. He explained: “We had a four-stage process – first to spend time in the airport to fully understand the building, the aspirations of the airport, passenger profiles and destinations, then to explore the options available to us, identify a direction and develop it into a final commercial plan for the duty free, retail and F&B categories.”

UK airport retail specialist Pragma Consulting conducted research to identify how the space could best be supported. As a result, space airside has increased to 2,300sqm, with landside space accounting for 700sqm of the new space.

While traffic is down 8.8% for the first eight months of 2009 compared to the same period last year, the new commercial offer is seen as an important driver of the business as the economy and passenger numbers recover. The overriding aim is to boost the airport’s share of the non-aeronautical business, said Psaila-Savona. “Currently commercial revenues account for around 19% of our overall revenue. By the end of 2010 we hope this will increase to 30%.”

As the major gateway to and from the island, Malta airport’s 16 new retail outlets – located airside – are designed to appeal to its current passenger profile, which includes predominantly Maltese and British travellers. “Having the right tenant mix and the best product availability is essential for us to reach our goals for the immediate future,” said Psaila-Savona.

Airside F&B space has increased from 745sqm to 1,361sqm and a new food court has been opened landside to cater for the diverse palette.

Airside F&B space has increased from 745sqm to 1,361sqm and a new food court has been opened landside to cater for the diverse palette.

New concessions

In the Schengen departures area, the Nuance Group’s new 145sqm walk-through duty free store has been designed to maximise the visibility of the commercial products, as well as create a more pleasant shopping experience. Commenting on its design, Gill said: “We wanted to create free flows through the shop to ensure that all categories would be passed by passengers.” They were also able to integrate a new airline lounge and gaming area into the same space as the walk-through duty free shop, ensuring that returning passengers had ease of access to the store from the lounge, he added. “Overall, the open space around the shopping area in the departures lounge is much wider, giving passengers ample space to move around and view all the shops, which have better visibility all around.”

The Nuance Group is the airport’s largest retailer, whose store is devoted to category retailing, with a ‘World of’ concept showcasing diverse categories, including spirits, perfume, confectionery and tobacco. The Nuance Group has also taken on a new destination concept – ‘Spirit of Malta’ – a second new store which features a delicatessen and focuses on gifting and souvenirs – all designed to appeal to local, business and foreign travellers.

Other new outlets making up Malta airport’s dynamic retail offer include Diamonds International, selling exclusive jewellery; boutique store Cieolo Venezia, located in the non-Schengen lounge; costume jewellery outlet Bling, budget retailer Bijoux Terner and Jet Set, a new fashion store selling internationally renowned brands.

While the airside space has seen the biggest transformation, the landside retail offer could be established as the shopping centre for the southern part of the island, said Psaila-Savona.

All three catering outlets in the Schengen area have also undergone a major overhaul. Airside F&B space has increased from 745sqm to 1,361sqm and a new food court has been opened landside to cater for the diverse palette. Passengers can now choose between Burger King, KFC, an Asian corner specialising in Chinese, Indian and Turkish cuisine, or English pub Fat Harry’s. “We expect to issue a tender for food and beverage services in 2011 as most of the existing contracts, both airside and landside, will expire within the next few years,” said Psaila-Savona.

Business Centre

The airport is embarking on a new project to develop an external Business Centre, which it hopes will play an important role in contributing to the Maltese economy. It would initially comprise of office space for leasing.

“Depending on the interest we get for office space we will then see if we should dedicate space to retail. We expect to finalise the project over the next 18 months,” said Psaila-Savona. Construction is scheduled to be complete by the second half of 2011.


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