Interview: Schiphol Group set to issue landmark tender for core retail categories under ambitious commercial vision

NETHERLANDS. Schiphol Group is preparing to issue a tender for core category airside retail spaces at Amsterdam Airport Schiphol in coming weeks. The opportunity combines perfumes & cosmetics (P&C) and sunglasses spaces with those dedicated to liquor, tobacco & confectionery (LTC).

The airport company is inviting selected travel retail players to take part in the tender, with the expectation that by year-end it will have chosen one partner for a contract scheduled to begin in May 2025.

Contract conditions including the precise business model (for example JV or concession only) and length of term will be finalised before the tender is released.

The process, which should begin in late May or early June, will feature two bid phases before the preferred partner is chosen.

Late last year Schiphol Group acquired travel retailer Kappé, which managed perfumes & cosmetics and sunglasses concessions at the Dutch gateway over many years. In 2025 Schiphol Group’s ten-year JV (under the Schiphol Airport Retail name) with Gebr. Heinemann will end, and these spaces will also come to market as part of the bid process.

These two developments will allow for enhanced space to be made available by combining P&C, sunglasses and LTC stores across the Schiphol piers, as well as allocating further square metres to these categories under planned redevelopment, providing a significant boost to the presence and potential of this concession.

Schiphol Group Commercial Director and Member of the Executive Team Arthur Reijnhart and Director Commercial Terminal Tim de Bie spoke to The Moodie Davitt Report about the opportunity.

Reijnhart said: “We are aware that this is a significant moment for retail at Schiphol. We aim to offer more seduction, experience and themed-based shopping. We have a lot of opportunity to improve the experience by combining our two major core categories and allocating extra space to them. The stores in some instances are fragmented and too small so we will take down walls where possible.”

“We can add better lines of sight, have a more comprehensive offering and make maximum use of passengers’ time in this way. That is all part of the upside.”

De Bie said: “We start from the premise that we want to offer the best possible experience in these categories, with a greater range of brands, a clear price proposition and a sustainable operation that is also data-driven. Then we will work out a fair, true partnership model for the contract.”

On the potential model, Reijnhart said: “The winning partnership here is not defined by whether it is concession only or JV. We will find the right structure that makes this work. What we want is a partner that right up front is fully aligned with us and sees eye to eye on the strategy that we execute together. Then we will put all our weight behind it to make it happen.”

Reijnhart explained that underpinning the project to revitalise retail was a plan to “restore the magic and the iconic status that Schiphol has long carried as a leading airport”.

He said: “We plan a major multi-year project of reinvestment in this airport, which will be at or above 1 billion Euros a year for the next five to six years, which is nearly double what Schiphol has spent in the past.

“That will take place across the aviation infrastructure and the piers but also in our lounges and stores. This is required to deliver the quality we believe is necessary to lift passenger satisfaction but also improve spend per passenger. Overall this is about recreating the experience, and is not just an exercise to come out stronger financially.”

Reijnhart said that the challenges of COVID-19 and especially the operational disruptions Schiphol faced in summer 2022 were “a wake-up call for our travellers, for staff and for the environment at large.”

The challenges that were called out relate in particular to the working conditions for staff, relationships with the local community and in the airport’s assets, from aviation infrastructure to retail and dining. Making improvement across all of these areas, while lifting passenger satisfaction and average spend, lies at the heart of the new strategy.

“On the plus side we can see that once you fix the operational issues, as we did in 2023, we saw satisfaction levels rise,” said Reijnhart.

“We recognise that our commercial offering can be improved. We need to start seducing our passengers again, and that in turn can bring tremendous upside compared to where we are now. The potential is enormous, and we along with our partners are going to invest in this recovery.”

Current projects under way include a major upgrade of Lounge 1, which by this time next year will include the integrated P&C and LTC offering. This is a template for what will follow across other lounges under the new partnership. Under the overall investment plan for the airport for the next five to six years, retail will be among the priority areas, with management expecting the stores to be fully developed in the first years of the new contract.

Schiphol management said that the airport company would be “hands-on and not a passive landlord” when it comes to managing the new core category partnership and others.

De Bie said: “We have had a lot of direct interaction with brands including in beauty since the acquisition of Kappé, but also in luxury and others. We can give many of them much better exposure under the redevelopment.”

“We also have our own in-house media arm, Schiphol Media. This also allows brands to have the opportunity to speak to travellers across the journey through Schiphol, from car park to the lounge to the shops; we aim to integrate those campaigns consistently across the airport.”

Reijnhart said: “We are also discussing how we can specialise much more. Is there room potentially to expand our ExQuisite premium luxury drinks and cigars store to other categories? People really love the rarity of the exclusivity we can offer here. We want Schiphol to be better known for this.”

Under an updated passenger experience strategy, key areas of focus are not just core retail, but also luxury and food & beverage (F&B).

In luxury, Schiphol began a programme to strengthen the presence of top-tier brands from Hermès to Rolex and Gucci – and this year introduces Bulgari, Louis Vuitton and other well-known luxury brands, a drive that will continue.

“There is potential here to increase sales and spend capability, building on especially our Lounge 2 offer used by many travellers from Asia and the Middle East,” said de Bie. “Luxury might not be a big play in terms of space but in spend and experience it is.”

While Schiphol has a number of long-term agreements for luxury spaces, the group is also currently in direct conversations with many of these top-tier brands.

In F&B Schiphol Group aims to “enhance the quality of the offering” under its long-term partnership with Avolta and several smaller partners.

“We will seek more diversity, more flavours and build on the numbers of brands we offer to boost awareness of the offering in F&B,” added de Bie.

Summarising the upcoming core category tender opportunity, Reijnhart said: “I cannot think of a better time to enter this travel retail business given where Schiphol is on the path of renewal and growth. We are very explicit and open about what we are trying to achieve and we are putting our weight behind it with multi-year investments.

“This is about selecting the partner that can go with us on the journey. It won’t happen in one day but there is a big opportunity to grow the business substantially. I should add that it is also an exciting time for the front-line people who have represented the partners, whether SAR or Kappé, over many years.”

Concluding, Reijnhart added: “Our core aim is to regain the appreciation of our passengers and make Schiphol a home port for world travellers with all of the positive emotions that come with travel. That means exploration, adventure but also familiarity and cosiness.

“We want designs and offerings that help us claim back that identity. Schiphol is a unique environment and is distinctly Dutch while being international and entrepreneurial. That vision will sit behind how we design and position our airport for the future.” ✈