LAYAM, fully controlled by the Teddy Sagi Group, has won an Israel Airports Authority tender to manage and operate the duty free souvenir and gifts store in Ben Gurion Airport's Terminal 3. The tender is for six years with the option for a two year extension, commencing November 1 2019.
The store in the passenger departure hall in Terminal 3 is currently operated by the Steimatzky chain. Under the terms of the tender, management of the store will be transferred to LAYAM on November 1 2019. Immediately afterwards, LAYAM will undertake renovation work of the store to substantially upgrade, at an estimated cost of NIS 1 million.
The store is 100 square meters in size with storage space of 136 square meters. Revenue during the period of the agreement is estimated to be about NIS 150 million.
The store sells souvenirs of Israel, Judaica, artistic and decorative objects, jewelry by Israeli artists, authentic handicrafts, and more.
LAYAM's bid for the tender is part of its strategy of expanding its duty free activities, encouraged by the constant rise in both inbound and outbound tourists at Ben Gurion airport. In 2018, outgoing traffic at Terminal 3 reached 9.1 million passengers, up 6% compared with 2017, and up 21% compared with 2016.
LAYAM CEO Shay Tangi said, "It is our plan to expand duty free operations and winning this new tender is the first step in that direction. It is our plan to bring new lines to the souvenir store at Ben Gurion airport, which is usually the last stop for outgoing passengers before they board the plane. We will expand the range of souvenirs and gifts sold in the store, among other things, adapting them to the traits of new tourists coming to Israel for the first time, and wanting a souvenir from their first visit to the country, as well as those leaving for a vacation outside of Israel and wanting to buy a gift for those living abroad."
Teddy Sagi Group acquired LAYAM's duty free activities from the Sakal family nine months ago. The company's duty free operations include three duty free stores at Ben Gurion airport, duty free stores at Israel's various ports, duty free stores for diplomats in Tel Aviv, duty free stores for passenger cruise ships, and providing duty free products to various organizations such as airline companies, UN forces and commercial bodies.
At Ben Gurion airport, LAYAM operates toy stores in Teminal 3 and Terminal 1 as well as a children's fashion store in Terminal 3. The toy stores are the world's largest (about 300 square meters) operating in a duty free hall.
As part of its maritime operations, LAYAM provides equipment and goods to ships anchoring at Israeli ports and is one of the most important suppliers in the field in the entire Mediterranean basin. The company competes against its counterpart rivals operating out of Mediterranean ports, mainly in Cyprus, Greece and Turkey.
Published by Globes, Israel business news - en.globes.co.il - on August 5, 2019
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