The first two branches of the Foot Locker sports stores will open in the coming months. Fox-Wizel Ltd. (TASE: FOX) will operate the Israeli franchise for the brand. Another Foot Locker branch will open shortly afterwards in Terminal 1 at Ben Gurion Airport, the Israel Airports Authority today reported - as part of the duty free chain at the overhauled terminal.
Designated for low cost flights, Terminal 1 is currently undergoing renovations, but is scheduled to resume full activity in July, when the duty free area in the terminal will also be opened. The mix of stores in the Terminal 1 duty free area will be similar to the at Terminal 3, but the area will be smaller, totaling some 1,650 sq.m.
Passenger traffic through Terminal 1 is slated to reach 1.5-2 million, compared with eight million passengers a year expected in Terminal 3.
When the terminal is opened, 220 weekly flights are expected go through it. In contrast with the current situation, passengers on low cost flights will not be taken to the Terminal 3 duty free area; they will stay at Terminal 1 in the new section, where they can go shopping.
Some of the franchise operators at Terminal 3, such as James Richardson, have first rights to open a branch at Terminal 1. Sakal Duty Free, which operates a sports store at Terminal 3, does not have this option; Foot Locker won a tender to establish its foothold.
The Foot Locker store in Terminal 1 will cover 178 sq.m., and if a tender is opened for the operation of a sports chain in Terminal 3, Foot Locker is also likely to compete for it. Foot Locker's contract with the Airports Authority is for six years with a three-year option.
Founded in 1974, the US-based Foot Locker chain has 3,400 stores in 23 countries specializing in sales of footwear and sports items of various international brands.
Fox, which has the Foot Locker franchise for Israel, is likely to open the first two stores in March-April in two shopping malls scheduled to open: one in Gindi in Tel Aviv and one in Rishonim in Rishon Lezion (owned by Azrieli Group Ltd. (TASE: AZRG)).
Recently after James Richardson announced that it was leaving the duty free area during the year, the chain announced it had an option to remain in the area if its cooperation with Heinman, which operates hundreds of duty free stores around the world, is approved. In this case, the two companies will jointly operate the store in Ben Gurion Airport, subject to approval from the Antitrust Authority director general.
Published by Globes [online], Israel Business News - www.globes-online.com - on February 26, 2017
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