It was announced last August that the James Richardson Heinemann Joint Venture had been awarded the liquor, tobacco, perfumes & cosmetics, and confectionery (LTPCC) contract at Ben Gurion International Airport’s T1 and T3. Garry Stock, Duty Free Chairman, James Richardson, and Raoul Spanger, Member of the Executive Board, Heinemann, spoke to Ross Falconer.
With 30 years’ experience in Israel, no-one knows the Israeli travelling consumer better than James Richardson Duty Free. Garry Stock, Duty Free Chairman, James Richardson, will share his experiences in this dynamic environment during the 27th ACI EUROPE Airport Commercial & Retail Conference & Exhibition, hosted by Israel Airports Authority in Tel Aviv.
“The past 30 years have seen much more dramatic change in the world economy and in the retail environment than in the first 40 years of the 70-year-old duty free industry. I will be emphasising the rapidly-changing demands on the duty free sector and how it must adapt to flourish,” Stock explains. “The Israeli travelling consumer loves deals, excitement, innovation and exclusivity combined with super-attentive service. So, the retail offer needs to be continually refreshed and the ‘buzz’ of the shopping experience maintained.”
It was announced last August that the James Richardson Heinemann Joint Venture has been awarded the liquor, tobacco, perfumes & cosmetics, and confectionery (LTPCC) contract at both the T3 and T1 terminals at Ben Gurion International Airport. The objective is to deliver even better value and an enhanced shopping experience.
“James Richardson has a great and long-lasting cooperation with Ben Gurion International Airport, which is the key for success in developing the business,” says Raoul Spanger, Member of the Executive Board, Heinemann. “James Richardson is already known for its wide assortment. However, with the Heinemann global network of category management, there will be opportunities to even further widen this assortment. The Joint Venture will also be able to draw upon the world-class supply chain that Heinemann is well-known for, to support the high unit volume of transactions in the business.”
Indeed, the partnership seems a natural fit, with both Heinemann and James Richardson being substantial family-owned businesses in travel retail.
“The fact that Heinemann bid for the LTPCC contract in 2013 showed we had a serious interest in Israel, and believed we could meet the expectations of customers and the airport. This is something that James Richardson valued greatly – they did not take it for granted,” Spanger comments.
From James Richardson’s perspective, it was looking for a skilled and highly-capable partner with the appropriate expertise to make its business even more successful.
Stock explains that Israeli travellers are used to, and expect, surprises. “In the last 12 months, they have been exposed to a new pre-order system, a restructured Loyalty Club, an expanded digital experience, and surprise in-store promotions on different days of the week,” he says.
James Richardson also plans to introduce some surprising retail experiences as part of the refurbishment of its three existing concourse shops and the new shop in Concourse E, and is reviewing opportunities to refurbish significant parts of the ‘Super Shop’ to further streamline the customer experience.
Meanwhile, the James Richardson Heinemann Joint Venture will see an upgraded look and feel to the customer experience, which Spanger describes as “full of inspiration, with personal integrated communication, aiming to reach the customer with personalised offers”.
JR/Duty Free also operates at border crossings in Israel and has been awarded the contract for the new Ramon International Airport, opening later this year. Stock and Spanger explain that, while the Joint Venture is currently focused on the duty free shops in Tel Aviv, it will progressively address other opportunities in Israel. “Only by working closely together can we grow the business available in Israel successfully,” they conclude.