CHINA. China Duty Free Group (CDFG) has entered into a key, ten-year contract with Guangzhou Baiyun International Airport for the Guangdong gateway’s new Terminal 3 international departures hall.
The new facility is expected to open in early 2026, replacing the T1 equivalent, where CDFG is the incumbent.
CDFG will operate 3,050sq m of shopping space at T3, to be opened on a phased basis, the airport company said.
At least 1,200sq m of business, comprising eight shops, must be opened simultaneously with the T3 departures hall.
In phase two, another eight stores must be opened by 31 December 2026.
For phase three, openings will be determined by negotiation between the parties based on passenger volume and duty-free business performance.
The entire concession will run until the 10th anniversary of T3’s opening.
The T3 contract is offered on preferential terms to CDFG compared with T1, lowering the revenue sharing rate from 23.15% to 21% while essentially maintaining the MAG growth rate (+6% growth p.a.).
Commenting on that change in a note, Goldman Sachs Equity Research said, “This [reduction] is consistent with our key downside thesis for China airports since our initiation (July-2022) and follow-up reports. We believe this downward pressure on airports’ DFS revenue sharing rate is caused by both regulation and weak consumer spending at airports post-COVID.” ✈
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