 |
CHINA. Haikou Meilan Airport Duty Free Shop will expand its space by 1,000sq m this year as the company aims to hit RMB1 billion (US$161 million) in sales in 2014. The airport will also enhance its food & beverage offer (see below).
Total duty free space will increase to 6,000sq m, according to the airport company. The duty free business houses 170 brands, including the largest airport sales outlet for branded watches in Asia and an airport chocolate store (under The Cocoa Trees name). New brands to appear soon will include Michael Kors, Hugo Boss, Samsonite and Pandora.
Hainan Meilan International Airport Company Limited Vice President Yang Xuqiang said: “The number of duty free outlets means a lot to an airport. Firstly, the duty free outlets help attract more people to shop and tour in Hainan. For example, airlines such as China Eastern Airlines have launched a programme for tourists to shop in airports with redeemable points they have earned from flights.
“Secondly, these outlets are very conducive to the brand image of an airport. For this reason, Meilan Airport plans to introduce more international premium brands to further improve its influence. Lastly, they are very helpful in boosting revenue. Therefore, we have decided to expand our duty free shop by 1,000sq m to include more international brands.”
In related news, Meilan Airport is upgrading its F&B offer. Yang Xuqiang said: “As the first step of our new plan, we have introduced brands such as Burger King and Starbucks outside the controlled area of Meilan Airport. Our next step is to rearrange the Departure Hall by opening restaurants serving Hainan cuisine including local snacks.”
Meilan Airport currently features brands such as Toasty Toasty, Ajisen Ramen, Burger King and Coconut Grove Hall, and a further five restaurants (Western, Chinese and Hong Kong-style) will soon open.
As reported last week, Meilan Airport has bought a 49% stake in its airport retail operation after a deal with previous shareholder HNA Group.
The airport has acquired Haidao Commercial for CNY1.274 billion (US$207.0 million). Haidao owns 49% of Meilan Mianshui, which operates at Haikou Meilan Airport. The remaining 51% of Meilan Mianshui is held by Hainan Province Duty Free Merchandise Co, which is controlled by the local government.
The Hainan government holds the license to retail at the airport, while its joint venture – formerly with HNA and now with the airport – operates the shops (with DFS Group supplying duty free product and management services).
 |
Haikou Meilan Airport Duty Free Shop: planned expansion will add 1,000sq m |
