Setur Duty Free, Turkey - Commercial Review

 

About the brand

Setur are the leading travel retail operator in Turkey, operating 38 stores in 23 locations, covering airports, shipping ports and land borders

They are the master concessionaires for the international duty free and retail at Sabiha Gökçen Airport, the second airport of Istanbul, which itself has experienced high passenger growth over the past few years

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The Challenge/Task

Setur have been operating duty free and retail at Sabiha Gökçen Airport since 2008. The airport had been experiencing very high levels of growth and a fast evolving passenger composition.  Management commissioned Pragma to help understand the changing passenger requirements and determine how the commercial strategy should evolve to meet their needs.

WHAT WE DID

  • Pragma evaluated the airport’s existing commercial offer by undertaking detailed store audits, covering all aspects from location, flows, and visibility, through to pricing and promotional activities

  • We conducted a comprehensive quantitative passenger survey and four focus groups, in order to analyse the passenger profiles of Sabiha Gökçen and their spending behaviour

  • We also analysed historical and current financial performance, benchmarking it against other airports, to understand key drivers of performance

  • We reviewed current commercial space allocations and mix, and developed a space supportable model to determine the optimum commercial composition

The Result

Pragma provided recommendations to Setur, identifying opportunities to improve trading performance through both short term quick wins concerning best practice retail principles, as well as longer term strategic changes to the commercial planning and product mix.