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Tourvest’s acclaimed Out of Africa destination store is a retail highlight at OR Tambo |
SOUTH AFRICA. Airports Company South Africa (ACSA) is to call a tender for the destination merchandise stores at Johannesburg OR Tambo International Airport in coming weeks. In a break with the existing concession formula – where all destination outlets airside are operated by a single operator, Tourvest – ACSA plans to split the concession and appoint two concessionaires.
Destination merchandise occupies a sizeable footprint in the airside mall at OR Tambo, through the acclaimed Out of Africa stores and other destination-themed outlets. The business accounts for around 20% of revenue generated from the airside mall’s retail outlets.
ACSA Assistant General Manager Retail Mahesh Govind told The Moodie Report: “We want to increase the size of the offer and add a second operator to the business. Tourvest is doing a fine job but we believe that the stores can showcase the best of South Africa in an even better fashion, and add competition in price and in the range.
“There are many curio operators that have shops outside the airport who offer different products. It’s important to note that the airport environment offers retail companies the opportunity to emerge and be seen; previously disadvantaged retailers can showcase themselves through the airport.
“As ACSA we run retail programmes that encourage smaller retailers to enter the mainstream, and empower them. It’s part of our strategy as an airport, and part of the government’s strategy.”
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ACSA is keen to introduce competition into the vital destination sector |
The move comes as ACSA refurbishes the central commercial zone airside, in what was the older part of the terminal building, before an extension opened in 2008. This will feature improved lighting and upgrades to the building. This is happening alongside a revamp of the main Big Five Duty Free store, aimed at making the unit more modern and attractive.
Next year, towards the end of Q1, ACSA will call a further major tender for around 2,500sq m of commercial space airside. This will cover all of the boutique concessions in the newer part of the terminal, which opened in 2008. Five-year contracts here expire in October 2013.
OR Tambo International Retail Manager Jabulani Khambule said: “We will re-tender all of the units here, and re-tenant the zone. Some of the brands and concepts work very well, but we will look to add some more premium brands. There is a lot of interest from high-end brands in the airport environment, and that top end is a gap in our mix. Many high spending African business passengers expect to see premium luxury brands in this environment, and we are probably the only African airport that can deliver this kind of environment.”
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ACSA will issue a tender next year for spaces in the new wing at OR Tambo International |
*We’ll bring you further details and comment in this week’s edition of The Moodie Report e-Zine, and a full feature in The Moodie Report Print Edition for October, out in Cannes.
