US. DFS Group has won a further five years as duty free concessionaire for the airports in the State of Hawaii. Bid documents for the In-Bond Duty Free Concession for State airports were opened on 28 December at 10am Hawaii time. DFS placed the only bid for the contract.
The retailer bid US$38 million a year in minimum guarantees (MAGs), the State of Hawaii, Department of Transportation, Airports Division, told The Moodie Report. The MAG offer was the same for each of the five years, amounting to a total bid of US$190 million. This was the minimum allowable guarantee.
The five-year contract begins on 1 June and runs until 31 May 2012. The retailer may extend for a further five years through to May 31, 2017, pending an additional US government approval.
Earlier this year DFS gained a one-year extension to take it to 31 May 2007.
DFS President and CEO Ed Brennan expressed his delight at the outcome, especially for all the company’s employees in Hawaii.
Gross sales for calendar year 2005 under the duty free concession were US$36.6 million on-airport and US$149.4 million off-airport.
DFS has a separate master retail contract at Honolulu International Airport, which it extended for three years in March, taking it to March 2009. Under the new three-year deal DFS will pay a monthly guarantee of US$829,166 or 20% of gross receipts.
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