US. Just days before the duty free tender at Miami International Airport closes, the field has narrowed significantly following the decision by the incumbent, DFS Group-related Miami Airport Duty Free, not to bid.
DFS Group Chairman Ed Brennan confirmed to The Moodie Report that the LVMH-led venture would not be defending its contract. He said: “We determined that the return on invested capital did not meet our financial objectives. We are committed to US airports and will continue to evaluate new opportunities on a case by case basis.”
Companies still known to be in the running include Dufry, DFASS and The Nuance Group (North America) which are bidding together, Duty Free Americas and Brasif.
Brasif will be bidding alone, The Moodie Report can confirm. It had initially been set to partner with Aer Rianta International but the Irish company has decided not to proceed. “Ultimately we decided it didn’t fit our business model,” a company spokesperson confirmed.
But Brasif will remain a formidable contender in the bid, thanks to its strong presence in the Miami market (where is has an airport duty paid business as well as a thriving domestic distribution operation) and its expert knowledge of the Latin consumer.
The onerous financial commitments contained in the bid documents allied to the logistical difficulties of trading in such a complex airport have deterred a wider field. But all those still in the running believe the upside significantly outweighs the risks and, especially the upfront bond commitments.
Bids are due in by 22 April.
Miami International Airport is undergoing a major refurbishment programme, including a complete reconfiguration of its retail space. The 10-year duty free contract will encompass 36,000sq ft of existing and new retail space.
MORE STORIES ON MIAMI INTERNATIONAL AIRPORT
Nuance and DFASS form powerful Miami bid alliance; both parties talk to The Moodie Report – 14/04/05
Brasif and Aer Rianta International create powerful partnership for Miami tender – 23/02/05
