SPAIN. In big breaking news, airport operator AENA has extended Dufry’s current concession to operate duty free shops at 25 Spanish airports for up to five more years.
The extension was announced by Dufry this evening. The world’s leading travel retailer by sales volume said that the AENA Board of Directors had reached the decision to extend the contract after the expiry of the current concession, which ends on 31 October 2020.
The structure of the minimum annual guarantee (MAG) will see an average annual increase of +1.56%. The level of the variable concession fee component remains unchanged (see table below for historic MAG payments under the current contract).
The newly extended contract includes an initial duration of three years and an option to further extend the agreement in two steps of one year at a time, in parallel with an investment programme to be implemented by AENA. The maximum duration of the extended contract will be until 31 October 2025.
Having been awarded the contract extension, Dufry will implement and roll out to other airports the commercial initiatives and best practices successfully launched and tested across five pilot airports (Barcelona T2, Malaga, Alicante-Elche, Gran Canaria and Bilbao) since June 2018. These were part of a common programme to identify and implement actions to improve commercial performance.
These initiatives included pricing policy, improvement of shop design and layout, assortment and brand optimisation, marketing and digital partnership actions, as well as sales staff incentives.
Dufry Group CEO Julían Díaz commented: “I am most pleased with the contract extension awarded by AENA and the renewal of our long-term partnership. We are convinced that the extension and the even closer cooperation of our local teams will increase the revenues and the profitability for both partners. This will allow us to support AENA in its upcoming important investment programme to further develop the Spanish airport infrastructure.
“I would like to thank AENA for their renewed confidence in Dufry. Our commitment is to create the best shopping experience throughout the Spanish airports, bringing the most exciting shop concepts for local and international travellers.”
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