BIG FIVE DUTY FREE
BIG FIVE DUTY FREE
Constant Evolution Keeps
Big Five at the Top
PRODUCTION: Timothy Reeder
Offering an extensive variety of products ranging from imported and local liquor to a wide selection of cosmetics, perfume and tobacco, Big Five Duty Free stores operate exclusively at O.R. Tambo, Cape Town and King Shaka International Airports. Husband and wife management team Chris and Marina Harilaou took us through the latest developments at the company and its action plan to keep Big Five at the top of the duty-free game.
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INDUSTRY FOCUS: RETAIL
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Big Five Duty Free has long been regarded as one of the main selling points of the airport commerce experience in SA, offering competitive pricing alongside comfortable and convenient shopping to make it the very definition of a one stop shop. It is not enough these days to simply deliver a range of products, even one as exhaustive as Big Five’s, and for this reason it pairs this with extensively trained personnel who boast endless product knowledge, and who, additionally, speak a number of languages, keenly waiting to be of service. This remains of paramount importance, according to the Harilaous. “Training on product, skills, emotional intelligence, team work and communication is a focus for us. It is vitally important and thus we don’t really overthink the expense this entails. If we can continue to invest in our team then we shall as the results are always beneficial. We also find that the South African legislation on skills development is supportive and encouraging of any company who totally commits to uplifting their staff. So, for us it’s a winning formula and it’s a huge
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pleasure to invest in a team that grow from strength to strength. “Our training is extensive. We obviously do the more usual trainings such as brand and team work training; and that’s great and necessary. However, we have gone onto a few more interesting things, like the basic language training we now offer, as well as confidence and self-esteem training. We have also introduced weekly breathing and meditation breaks lead by a Pilates instructor in an attempt to alleviate the stress experienced by employees.” The overarching aim of such a pastoral approach is, in management’s words, “to build a strong, confident and capable team but also to create individuals who, if they choose to leave Big Five are an asset to any company they may join and who will grow to enable a strong South African economy.” Amidst the continuing uncertainty at South African Airways and a general trend of the consumer away from extravagant spending, it might be natural to assume a certain drop in the volume of business for Big Five in recent times. Not so, according to Chris Harilaou. “We have not
been particularly affected by the South African Airways situation,” he clarifies, “as there are bigger airlines which are filling these gaps all the time. If anything, we have seen extra flights coming in from other airlines in all our airports. Important to note is that the general footfall has not grown significantly but nor has it dropped. The reason for this, we believe, is that South Africa has become slightly more expensive for the cash strapped consumer due to the strength of the local South African Rand.” However, in spite of a sustained volume of custom, Big Five has not been able to rest on its laurels by any stretch, with the ever-looming threat of financial uncertainty to also contend with. “The past 12 months have seen South Africa formally being categorised as in recession,” Marina Harilaou states. “Only last month did our Reserve Bank state we are now out of the recession but only by a few percentage points. The flux around the strength and weakness in the South African Rand creates an environment where stability in import/export and retail in general is very challenging.
INDUSTRY FOCUS: RETAIL
“There are definitely repercussions owing to the weak economy, and these certainly stretch beyond travel retail into all sectors of the economy.” This has impacted upon Big Five’s ability to keep up the consistent double-digit year-onyear growth it had consistently achieved in recent years. “We have at the moment just fallen short of the double-digit growth figure,” explains Chris Harilaou, “however this can be directly related to the weakness and strength of the Rand. A strong Rand affects the spend of our consumers. They have less in their pockets once the exchange is done. However, in terms of quantity of units now vs last year we do see that there has been marginally greater uptake by the consumer.” Indeed, it would appear that it is exactly Big Five Duty Free’s
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positioning in the market that is helping to shield it from any potential drawbacks of the volatile economy, offering to consumers as it does something of a haven of competitive prices and allencompassing selection, meaning it is able to continuing to flourish within its field. Long known as a trendsetter within the industry, the company was again making waves with the launch of a new e-commerce portal linked to South Africa’s O.R. Tambo airport. The concept allows visitors departing from International Departures at O.R. Tambo International Airport to make duty free purchases online and collect their items at the airport on departure. Big Five, the largest duty-free retailer operating at the airport, is heavily involved in its stance as the launch partner for the
portal, which means its customers now have the opportunity and the means to make their confectionary, alcohol, perfume and cosmetics purchases online way ahead of departure. This comes as Airports Company South Africa (ACSA) releases an extremely positive set of results for the year to date, highlighting within them nonaeronautical revenue as an area of particular strength. This is a boost which Big Five has felt keenly itself, and allowed the company to put in place such fresh initiatives, as Marina Harilaou outlines. “We have put in place a variety of avenues to increase revenue, to offer a wide and competitive range of products as well as offering products unique to our country,” she explains. “At times like this we find creative thinking, marketing and a little bit
BIG FIVE DUTY FREE
of diversification help you to grow.” Harilaou feels that this is particularly clearly shown in Big Five’s own country of operation. “South Africans are superbly innovative,” she continues, “and we constantly look for good local product to offer where we can. This year was all about the artisanal gins being manufactured in SA. If you haven’t tried them you should - superb in quality, taste, branding and in the heritage that is so unique to our country.” Big Five Duty Free’s business also looks set to continue to burgeon thanks to the South African government’s sustained commitment to push tourism as a key growth industry. South Africa is a mainstay among the world’s top tourist destinations, and an ongoing focus on the development of the industry can only be beneficial to
a company such as Big Five. Chris Harilaou details the further steps he feels can be taken to solidify and even grow its present standing. “We do expect an increase in traffic through our stores,” he states, “but the caveat is that [South Africa] also needs to be seen as a value for money destination. It’s a balancing act when the currency moves between too many spectrums too fast, and we also need to acknowledge that the economic global world is itself in a challenging space; Brexit has affected our British consumers for example as the Pound trades weaker than seen in recent years. “Studies show that the new trend is to save for a special destination rather than purchase outlandish consumer goods. The flip side of that is that people are consciously saving for that special
trip: South Africa must be correctly positioned to fulfil that offering.” Marina Harilaou concludes by telling us that Big Five’s investment in the near future will be focussed on its trio of present locations. “We will invest in our current stores. Our focus is on the three international airports operated by ACSA and, for now, that is where it will remain. However, we will invest in those current operations with new concepts and brands and bring it all together to create an updated shopping experience.”
BIG FIVE DUTY FREE +27 11 390 2670
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Issue No.63
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TRANSNET PORT TERMINALS
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Nozipho Sithole
ALSO IN THIS ISSUE:
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A S F E AT U R E D I N
ENTERPRISE AFRICA
OCTOBER 2017