International Duty Free Complex (IDFC) currently has two duty free stores in Moi Airport in Mombasa, Kenya with a total retail space of approximately 185-square-meters. The company sells a wide variety of categories, including cigarettes, cigars, liquor, tea and coffee, clothing, watches, diamonds, gemstones, gold jewelry and confectionery. While a number of external circumstances have resulted in a drastic reduction in sales over the last two years, the company continues to devise creative promotions as a means of enticing customers to buy.
“Tourists passing through the airport have declined over 50% in the past two years,” says Himashu Shah, Managing Director of IDFC. “We have been significantly affected since the violence experienced during Kenya’s elections in December 2007. As a result there has been a significant decline in tourists. However, the various political parties in Kenya came to an agreement in mid-2008, which brought some measure of stability.
“We have run Buy 3 Get 1 Free and Buy 4 Get 1 Free and promotions in most categories,” he continues. “We also offer up to a 60% discount on souvenirs. These actions have encouraged passengers to buy that little bit extra in order to receive free items or substantial discounts.”
New listings are also a part of keeping travelers interested, and IDFC recently began selling fragrances by S.T. Dupont and Paul Smith, Gold Crown flavored teas and a number of brandy and whiskey brands from India, namely McDowell’s, Director’s Special and Royal Challenge, that Shah reports are selling well.
“At this point we feel that the second half of the year will be much the same as the first half,” concludes Shah. “On a positive note, however, we’re currently looking at the possibility of opening other duty free locations in surrounding countries, although no concrete plans have been made.”