Can you tell us about our operation in North Macedonia? How do you evaluate the duty free market in the region and ATU Duty Free's position and potential in this market?
We continue our operations with our 326 square meter Schengen and 30 square meter wine store in Skopje and 50 square meter duty free stores in Ohrid. This is a dynamic operation that is growing every year. We have increased our sales by 104% compared to 2019 and by 16% compared to last year.
The duty free market in the Balkans has great potential due to the geographical and economic dynamics of the region. Tourism, regional trade and increasing air traffic figures are some of the factors driving the growth of this market. The recent passenger growth at Tirana, Pristina and Skopje airports has led to significant changes in the duty free market.
As ATÜ, we offer a wide range of products in many categories to our passengers in our stores in Skopje, the capital of North Macedonia, and Ohrid, the tourism region. With this growth, we continue to be an important player in the duty free market in the region.
How do you carry out your collaboration processes with local and international stakeholders? How do these processes contribute to the success of your operations?
The good relations we maintain with our stakeholders both in Macedonia and abroad have a positive impact on the success of our operation. We have very good relations with airport operator TAV and its group companies. We also have very good relations with customs and police departments. We also come together with local company owners and managers from time to time to keep our relations warm and to move towards our common goals.
Can you tell us about customer shopping habits in North Macedonia? What are the most preferred products by product-category?
I can list cigarettes and local drinks as the most preferred product groups in North Macedonia. The fact that a large part of our customers are passengers working in Europe and that cigarettes are much more expensive due to the taxes imposed on these product groups in the destinations they fly to and that they cannot access local wines keeps the sales of these products strong.
Which countries do the customers who shop the most in your operation come from?
I can list it as Germany, Turkey, Switzerland and Austria.
In 2022, after the renovation investment in our store at Skopje Airport, what kind of improvements did you see in customer experience and sales performance? Did it meet your expectations?
With the renovation of our main store, we realized a 51% leap in sales compared to the previous year. Our customers can now enjoy a much improved shopping experience with our growing product range and new store look. The share of perfume and cosmetics sales in our total sales has increased from 18% to 24%. Similarly, we also achieved significant sales increases in accessories.
Have you faced any unusual operational challenges in recent years? How did you approach it and how did this experience add value?
North Macedonia took an important legislative step in September 2024 by adopting the “Prohibition of Unfair Trade Practices” law. This law, in a nutshell, dealt with rules and measures to prevent unfair trade practices. There was a direction to amend contracts between suppliers and buyers to bring them into compliance with the law. This was about to result in ATU Macedonia losing 50% of its other revenues from suppliers. In September this year, we had an hour-long meeting with the Minister of Economy and Labor of North Macedonia at the ministry office. We explained ATU Macedonia's position on the new law and why we as a company should be exempted from it. A few weeks after this meeting we received good news from the ministry. It resulted in the fact that this initiative and our efforts were not in vain. By being exempted from the law, we have prevented the loss of a very important income.
How do you use technology to improve your operational processes and enhance customer experience?
For in-store communication, we have commissioned walkie talkie communication devices with headphones used by the sales staff of many world-famous retail chains. Thanks to these devices, our sales representatives can communicate much more effectively. In particular, for example, in the perfumery department, we can inform the sales team in charge of that department in advance about the passengers who have completed their shopping and proceeded to other departments, and we can ensure that passengers with high sales potential are effectively welcomed. In terms of security, our sales staff can communicate more effectively with each other at the point of monitoring within the store.
Can you tell us about your operations team and your team structure? How do you strengthen collaboration within the team?
Our team in Macedonia consists of 60 people, 4 of whom are based in Ohrid. In total, we manage our three stores with 5 assistant team leaders under the leadership of our team leader. We have a staff of 10 people for administration and 7 for logistics. In order to strengthen collaboration, we make sure that we do bonding and unifying activities together. We also encourage each other to give feedback and keep communication channels open.
What professional and personal experiences have you gained from working in different cultures and being part of an international team?
Working in different countries and being a part of a team with people living in those countries has actually enabled me to understand the cultural differences of the people in those countries, to communicate more carefully, and to adapt to different working styles and ways of doing business. I can say that these have helped me become more flexible and solution-oriented. In addition, I have also gained instructive experiences on more inclusive and effective leadership. Working with people from different cultures has also given me new perspectives and helped me develop my ability to empathize and cope with cultural differences.
