USA. Dallas/Fort Worth Airport has said it wants to rival the best Asian airports with its customer experience and retail offer – with duty free a key component.
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“Our target is to rival the best Asian airports such as Incheon, Singapore Changi and Hong Kong.“ |
Ken Buchanan Executive Vice President of Revenue Management Dallas/Fort Worth Airport |
The airport hosted a tender briefing for its Terminal D duty free concession last week, outlining the scale of the opportunity, and its ambition to more than double current annual sales from US$16 million. The day attracted leading travel retailers such as DFASS (incumbent through its Buckaroo Duty Free operation), Duty Free Americas, DFS, Dufry, LS travel retail, World Duty Free Group, Aer Rianta International and others. The Moodie Report Vice Chairman Dermot Davitt spoke at the event (and separately at an internal Selection Committee meeting) about trends and influences in the global market.
As reported, at stake is a ten-year concession for six units totalling 19,353sq ft. The main opportunity lies in a brand new 13,292sq ft space to be built in the existing concourse close to the main international gates. Several other duty free stores within the terminal will be reconfigured and relocated to maximise space and visibility.
Executive Vice President of Revenue Management Ken Buchanan said: “We won’t be able to achieve our long-term financial plan without a bold vision for duty free. We need to get this right. We are excited about the experience we want to create. Terminal D already scores well against other US and European airports for customer experience; now our target is to rival the best Asian airports such as Incheon, Changi and Hong Kong.
“We also want to be great partners for our concessionaires, and don’t see this as a traditional airport-tenant relationship. We need your best thinking and ideas,” he told potential duty free partners.
In its presentation to partners, the airport outlined how it aimed to deliver a “one of a kind” experience to travellers through its duty free operation, notably through the creation of new spaces and engaging activities. It said it wanted to “blur the lines between retail and entertainment” and to “create visual landmarks” around the terminal. It aims to introduce new brands to the Terminal D audience, and has steadily improved facilitation and passenger processing to lift dwell times.
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Incumbent Buckaroo Duty Free is likely to face stiff competition for the ten-year contract |
Proposals for the duty free concession are due by 2 April. It is anticipated that a short-list of leading bidders will be invited for negotiation, before a recommendation is made to the board. Buckaroo Duty Free’s concession expires in October. To avoid work over the year-end holiday season, construction of the new duty free stores will probably begin in early 2016.
The duty free project is part of a long-term US$3 billion investment in renewing and upgrading Dallas/Fort Worth Airport.
In Terminal D, the integrated retail, food & beverage and service spaces should offer “a continuous flow of interaction and offerings,” noted the airport. New F&B outlets to open soon will include a Mediterranean concept and a high-end bistro-style restaurant.
In retail, a series of new openings will boost the luxury goods and beauty offer in the months ahead, creating distinct luxury zones. DFASS will open stores in both north and south nodes for Jo Malone, Aveda and MAC. LS travel retail will open Hugo Boss and Tumi stores, while Duty Free Americas will open boutiques for Coach, Michael Kors and Montblanc.
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Six duty free outlets are available as part of a series of RFPs at DFW |
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Terminal D retail spaces are being reconfigured to accommodate new concessions |
