SINGAPORE. The Civil Aviation Authority of Singapore (CAAS) has issued a tender for a key watches concession at Singapore Changi Airport.
The store is in the departure/transit lounge west of terminal one and is currently run by Richburgh/Sincere Watch Group. “It’s the biggest watches concession in T1 with the best location and very professionally run,” noted one leading supplier.
Interest is likely to be intense based on the other watches tenders held at Changi over the past 18 months.
In February 2004 incumbent retailer Sincere Watch Duty Free retained its other watches concession at T1’s departure/transit lounge east. The group will be desperately keen to retain its stranglehold on the T1 business. But it will face tough competition, likely to come from DFS, Gassan Diamonds, King Power (HK) and possibly Nuance-Watson, Watches of Switzerland and local companies.
In last year’s T1 tender Sincere was the top bidder, heading off DFS Venture Singapore, Gassan Diamonds (Singapore) and Watches of Switzerland. Sincere bid aggressively, offering 10% of total monthly gross sales or a minimum monthly guaranteed payment of S$228,000, whichever is higher, for the concession in the T1 departure/transit lounge east.
A few months later DFS won both of the two T2 concessions after the toughest of fights with one of the incumbents, Gassan Diamonds (DFS held the other contract), as well as Richburgh and Sincere (each of the related companies bidding for one store each). On that occasion DFS bid 10% of total monthly gross sales for the first location or an MMG of S$495,888 per month; plus 20% of gross monthly sales exceeding S$1,900,000 per month, whichever is higher.
For the second location it offered 10% of total monthly gross sales or an MMG of S$284,888 per month; plus 20% of gross monthly sales exceeding S$1,300,000 per month, whichever is higher.
Bids on the latest tender close on 19 August for the new contract which runs from 1 November 2005 to 31 October 2008 with a renewal option (at the discretion of the CAAS) of up to two years subject to agreed terms and conditions.
A site visit will be held on 2 August for interested parties.
MORE STORIES ON SINGAPORE CHANGI AIRPORT
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