CHINA. Global travel retail powerhouse Avolta tonight expressed its delight at having this week won a key, multi-category tender at Shanghai Pudong International Airport.
As reported, Avolta – as Dufry (Shanghai) Commercial Co – was yesterday (16 December) awarded Concession 1 of a three-pronged tender* covering Shanghai Pudong and Hongqaio international airports. Concessions 2 and 3 were awarded to China Duty Free Group (CDFG).
As revealed by The Moodie Davitt Report on 11 December, Avolta and CDFG topped the bidding result. Yesterday’s announcement by tenderer, Shanghai International Airport Co and tender agent Shanghai Shangzi Construction Engineering Consulting Co, formally confirmed the awards. These are set to be structured as joint ventures with the retailer holding 51% and the airport 49%.
Incumbent Sunrise Duty Free was unable to bid due to a clash with its 51% parent company CDFG.
Avolta’s breakthrough contract embraces 43 departures and arrivals duty-free shops spanning more than 8,000sq m of space in the international areas of Terminal 1 (T1) and Satellite Hall 1 (S1) at Pudong Airport, one of China’s key international gateways. (see below for contract details). The two facilities are projected to serve 18.7 million international passengers in 2026.
Avolta callled the success an “historic milestone award” that reinforces the company’s strategy of geographical diversification and underpins its long-term growth ambitions in Asia Pacific.
With this win, Shanghai Pudong International Airport becomes Avolta’s first airport location in APAC where it will operate all three lines of business (duty free, convenience and food & beverage) bringing together what the company called the full breadth of the company’s capabilities at one destination.
Avolta said the award reflects Shanghai Airport Authority’s confidence in the company’s ability to combine global duty-free expertise, data-led category management and local market insight to deliver a high-quality, scalable retail proposition.
Avolta President and CEO Asia Pacific Freda Cheung said: “Shanghai is a vital global gateway, and we will deliver a duty-free offer shaped by local insight, featuring Chinese brands and a locally adapted assortment, aligned with the expectations of today’s travellers. We thank Shanghai Pudong International Airport for its trust and partnership.”
Avolta CEO Xavier Rossinyol commented, “This is a breakthrough moment for Avolta, strategically and symbolically.
“Becoming the first international operator to enter Mainland China’s airport duty-free segment in a generation reinforces our Destination 2027 ambition to grow through diversification and integrated travel experiences.
“My sincere thanks go to our teams on the ground, led by Freda, whose expertise and commitment made this historic achievement possible.”
As this is a first-of-its-kind award in Mainland China, several procedural steps are required before Avolta can initiate operations under the newly awarded concession.
These steps have been initiated, Avolta said, and operations will commence once the process is complete.
Below are the full details of the tender outcome from our earlier stories.
*Tender structure
As reported, the tender was divided into three parts. Bidders were free to choose which ones to bid on.
- Concession 1: Departures and arrivals duty-free shops in the international areas of Terminal 1 (T1) and Satellite Hall 1 (S1) at Shanghai Pudong International Airport. WINNER: Dufry (Shanghai) Commercial Co
- Concession 2: Departure and arrival duty-free shops in the international areas of Terminal 2 (T2) and Satellite Hall 1 (S2) at Shanghai Pudong International Airport. WINNER: China Duty Free Group Co
- Concession 3: Departure and arrival duty-free shops in the international area of Terminal 1 (T1) at Shanghai Hongqiao International Airport. WINNER: China Duty Free Group Co
According to the tender guidelines, a single bidder could not be awarded both Concession 1 and 2. However, a bidder winning either Concession 1 or Concession 2 remained eligible to also win Concession 3.
Pudong and Hongqaio tender snapshot
Concession 1: Dufry (Shanghai) Commercial Co
Quoted offer: Fixed Fee (Unit Price) ¥3,141/㎡/month. Commission rate for various categories 8%-24%
Starting date and tenure: 1) Term of transfer of overall operating rights: The term of this contract for the transfer of operating rights is 3+5 years, from 1 January 2026 to 31 December 2033.
The delivery time of each site shall be based on the actual delivery time of the tenderer, but the contract termination date is 31 December 2033.
Phased Transfer of Operating Rights Term
Phase 1: The operating rights transfer term is 5 years, from 1 January 2026 to 31 December 2030. If the contract is successfully completed after the fourth year, the contract will be renewed for Phase 2 if the applicant passes the assessment by Party A; otherwise, the contract will terminate.
Phase 2: The operating rights transfer term is 3 years, from 1 January 2031 to 31 December 2033.
Concession 2: China Duty Free Group Co
Quoted Offer: Fixed cost (unit price) ¥3,090/㎡/month. Commission rate for various categories 8%-24%
Starting date and tenure: The term of transfer of operating rights under this contract is 5+3 years, from 1 January 2026 to 31 December 2033.
Phased Transfer of Operating Rights Term
Phase 1: The operating rights transfer term is 5 years from 1 January 2026 to 31 December 2030. If the contract is successfully completed after the fourth year, the contract will be renewed for Phase 2 if the applicant passes the assessment by Party A; otherwise, the contract will terminate.
Phase 2: The operating rights transfer term is 3 years, from 1 January 2031 to 31 December 2033.
Concession 3: China Duty Free Group Co
Quoted offer: Fixed fee (unit price) ¥2,827/㎡/month. Commission rate for various categories 8%-22%.
Starting date and tenure: The term of the transfer of operating rights under this contract is 5+3 years, from 1 January 2026 to 31 December 2033.
Phased Transfer of Operating Rights
Phase 1: The transfer period for the operating rights is 5 years, from 1 January 2026 to 31 December 32030. If the contract is successfully completed after the fourth year, the Phase 2 contract will be renewed if the performance evaluation by Party A is passed; otherwise, the contract will terminate.
Phase 2: The transfer period for the operating rights is 3 years, from 1 January 2031 to 31 December 2033. ✈
TENDER ALERTThe Moodie Davitt Report is the industry’s most popular channel for launching commercial proposals and for publishing the results. If you wish to promote an Expression of Interest, Request for Proposals or full tender process for any sector of airport or other travel-related infrastructure revenues, simply email Martin Moodie at Martin@MoodieDavittReport.com. We have a variety of options that will ensure you reach the widest, most high-quality concessionaire/retailer/operator base in the industry – globally and immediately. The Moodie Davitt Report is the only international business media to cover all airport or other travel-related consumer services, revenue-generating and otherwise. Our reporting includes duty-free and other retail, food & beverage, property, lounges and other hospitality services, art and culture, hotels, car parking, medical facilities, advertising and other related revenue streams. Please send relevant material, including images, to Martin Moodie at Martin@MoodieDavittReport.com for instant, quality global coverage. |
