DENMARK. Copenhagen Airport management hosted the potential bidders for its duty free concession at a key site inspection and briefing on Friday.
Bids close on 6 June for the important contract, currently held by The Nuance Group. The five year-plus concession will be awarded in August and commence on 1 March 2007.
Nine companies are currently in the contest though it is not certain that all will table bids. They are the incumbent Nuance as well as Aelia, Aer Rianta International, Aldeasa, Alpha Airports Group, DFS Group, Dufry, Gebr Heinemann and Global Airport Services (the joint venture between World Duty Free and Crossbar Associates).
It is understood that seven of those companies attended Friday’s meeting – Alpha and Aer Rianta International were the exceptions.
At Friday’s meeting Copenhagen Airports Vice-President Commercial Affairs Henrik Busch talked the parties through critical impending changes in the passenger flow and retail offer. These are all designed to increase retail revenue and to make the commercial opportunity much more attractive for the winning bidder.
The most important change is the introduction of a radically revamped Central Search security system at the airport. The two existing checkpoints for departing international passengers – one in Terminal 2 and one in Terminal 3 – will be replaced in late 2007 by a new, central checkpoint.
The new system will see all passengers funneled into one central area, including a 100% walkthrough duty free store as soon as they clear security. The closed back wall of the current main shop [running from the Lancôme men’s cosmetics area to the stand-alone Anthon Berg confectionery store] will become the front entrance.
“We made the decision to make these changes one and a half months ago,” Busch told The Moodie Report during an interview at the airport last Thursday. “And we are now working very hard on the plans to ensure everything is done in the right time for the duty free tender.”
That interview will be published this week in a special edition of The Moodie Report PLUS. Its contents are likely to allay concerns that it will be difficult to make money out of the Copenhagen contract (Nuance has posted losses there over several years).
Copenhagen Airports will work closely with the winning concessionaire on the radical changes to the main store, Busch promised. And in an important announcement, he said the five year contract term would not actually begin until after the building work had been completed – effectively creating a five-year plus tenure. The work is likely to be finished about two to three months after the winning bidder takes up, or retains, tenure.
Busch said he had looked closely at the Heathrow T3 and Sydney Airport models – “looking for 100% footfall”.
He added: “It’s very important that we ensure people are relaxed, ready to shop, safe and know where they are going. So the orientation zone is very important.
“We will announce the winner of the tender at the end of August and they will take over on 1 March 2007.”
Other important changes to the retail offer, included in the tender, are a big increase in the Pier B store (a last minute store that attracts significant business) which will also become walkthrough and an expansion of the (duty paid) Arrivals offer [for full details see this week’s edition of The Moodie Report Plus].
On the subject of Arrivals shopping, Busch conceded there had been some negative impact from the introduction of the concept in Oslo Gardermoen Airport last July. The (non-EU) Norwegian spend has always been of critical importance at Copenhagen Airport.
But he said Nuance had responded well, putting a big emphasis on special offers (pictured) to Norwegian travellers in key sectors such as aquavit.
“We’re very convinced that we will have a good tender this time,” Busch said. “It’s very exciting because it is a 5-plus contract.”
EDITOR’S NOTE: The duty free development is just one aspect of an ambitious 5,500sq m increase in retail and food & beverage space at the airport over the next three years. Full details later this week.
MORE STORIES ON THE COPENHAGEN BID
Strong commercial gains lift first quarter revenues at Copenhagen Airports – 02/05/06
Then there were nine”¦ powerful line-up for duty free tender delights Copenhagen Airports – 16/03/06
Macquarie Airports CEO Kerrie Mather outlines Copenhagen duty free tender aspirations – 16/02/06
