Dick Smith has revealed it expects to rake in up to $50 million in a year from sales to travellers via seven shops it plans on opening at Sydney airport in 2015.
The shops are expected to start selling in February or March in the international and Virgin domestic terminals. The location will give Dick Smith access to an estimated 13 million international passengers who travel through the airport each year.
The rollout is via an exclusive partnership with global duty-free retailer Gebr. Heinemann. The partnership amid news of a major revamp to Sydney Airport's duty-free retail area.
Revenues from Dick Smith's Move airport shops will come with only "modest" capital or setup costs, said Dick Smith CEO Nick Abboud.
"This opportunity is consistent with our strategy of achieving strong sales and profit growth through low capital intensity initiatives such as David Jones and Move," Abboud stated. Margins are expected to be similar to other stores in the retailer's network.
Customers will also be able to pickup products at the airport Dick Smith Move shops that they have ordered via the retailer's "click and collect" process.
Dick Smith's number of net new stores climbed to 54 in the last financial year. Abboud has publicly stated the company hopes to about 20 new stores a year.
The company reported a strong increase in profit after tax for the 2014 financial year, up from $6.7 million to $42.1 million.
CRN understands that Dick Smith's Move shops at Sydney Airport will be within the revamped retail zone, which will be operated by German company Heinemann.
Heinemann has clinched a seven-and-a-half-year deal to take over the duty-free airport contract next year from Nuance, which operates SYD Duty Free.
Sydney Airport plans "one of the most exciting duty-free experiences of any airport globally", according a press statement issued today.
"The space will be reconfigured to focus on customer orientation zones and establish clear lines of sight to aircraft gates and other areas of the terminal to significantly improve the passenger experience," stated Sydney Airport chief executive officer Kerrie Mather.
The Sydney Heinemann operation will offer online shopping, a digital loyalty app and "other unique digital features".
Heinemann will operate five duty-free shops as well as a "landside" offering and will introduce 400 new brands to the airport. The German company has 234 outlets in more than 60 airports in 28 countries.
-1.jpg&w=100&c=1&s=0)
.png&w=100&c=1&s=0)
