CHINA. Beijing Capital International Airport (BCIA) has awarded its two duty free concessions to China Duty Free Group (Terminal 2) and Sunrise Duty Free (T3), respectively, The Moodie Davitt Report can confirm.
As reported, the airport operator issued a dual tender notice covering its duty free retailing concessions at Terminals 2 and 3 on 24 February. The businesses are currently run under a single concession by Sunrise Duty Free.
The award is a huge boost for China Duty Free Group (CDFG), now under the leadership of President Charles Chen**, especially as it follows the company’s success in winning the Hong Kong International Airport liquor, tobacco and gourmet foods concession in partnership with Lagardère Travel Retail. Incumbent Sunrise Duty Free will also be delighted to retain T3 after a stiff challenge from Zhuhai Duty Free and Shenzhen Duty Free (see bidders below).
Financial results (see table ) were revealed in April. CDFG was the highest bidder on T2 and Zhuhai Duty Free on T3 (just ahead of Sunrise). But the technical evaluation put Sunrise ahead overall on T3, a critical result for the retailer, especially in relation to the touted merger of Sunrise Duty Free China into CDFG*.
CDFG ranked first overall in the T2 bid, ahead of Zhuhai Duty Free and CNSC.
The contracts cover:
1) T2: international terminal departures area – 3,186sq m; arrivals zone – 417sq m
2) T3: outbound international – 9,461sq m; arrivals 1,939sq m
Categories covered by the contract include perfume & cosmetics, tobacco & liquor, confectionery, fashion and accessories, watches, jewellery and other items.
Beijing Capital International Airport handled 94,393,000 passengers in 2016 (domestic and international), up +5% year-on-year.
*Footnote: The outcome of the Beijing bid has significant repercussions for the future relationship between CDFG and Sunrise Duty Free China. Click here for the March statement on the matter by CDFG parent company China International Travel Service Corporation.
**Footnote 2: Charles Chen will deliver a major speech at this year’s Trinity Forum in Bangkok (1-3 November).
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