Hoverspeed is extending its duty-paid retailing business in an attempt to counter the effects of the European Union’s ban on duty-free sales.
The fast-ferry operator first opened The Grape Shop, selling wines and beers at lower continental duty rates, in Boulogne in 1997.
It launched another Grape Shop in Frederikshavn, Denmark, in November last year and last Friday it opened the doors to a third in Ostend.
Hoverspeed retail director David King said the lack of clarity over what is going to happen over duty-free was one of the reasons the duty-paid business had been developed.
“With all the uncertainty surrounding the subject, it seems sensible to make this move,” he said.
But even when duty-free goes on June 30, King believes the market for continental shopping is still huge.
“Wine sales are limited under duty-free but on duty-paid, it is not vendor controlled. With duty rates on alcohol and tobacco continuing to rise in the UK, the market for cross-Channel shopping is growing all the time.
“Our first store in Scandinavia demonstrates that we will be looking to expand in other markets where differential tax regimes continue to provide a major incentive for travel retail opportunities.”
Meanwhile, Hoverspeed has confirmed that its 1999 fares have risen because of uncertainty surrounding the duty-free issue.
A Dover to Calais five-day return trip for a car containing up to nine people starts at ú99, up from ú69 last year.
But the company’s managing director Geoffrey Ede said: “Despite all the hype about fares and the abolition of duty-free, Hoverspeed continues to offer a very good deal with a firming up of fares in 1999 only amounting to an average of ú5 per person per crossing.”