JR/Duty Free retains Wellington Airport concession after open tender

NEW ZEALAND. JR/Duty Free, the incumbent retailer, has been awarded the duty free concession at Wellington Airport for the next seven years after what it described as “a very thorough and rigorous tender process”.

JR currently operates a 1,000sq m airside Departures duty free shop and a 750sq m Arrivals store. It also runs the landside Discover NZ destination merchandise shop and MAC cosmetics stores.

The contract win at the gateway to New Zealand’s capital city is an important boost for the independent family-held retailer amid intense multi-national competition in Australasia from Dufry, Gebr Heinemann, Aer Rianta International and Lagardère Travel Retail and what is certain to have been a highly competitive bid.

JR/Duty Free CEO Milton Lasnitzki said: “We are thrilled to be given the opportunity to continue our business at Wellington. Our people on the ground know what the Wellingtonian travellers want and how to provide it to them.

“The passenger base is predominantly cross-Tasman and we have been servicing and growing this business since 2009. We look forward to continued growth in the seven years ahead.”

Retaining the duty free contract at Wellington Airport represents an important hold for JR/Duty Free in an increasingly competitive Australasian travel retail landscape

Wellington Airport CEO Steve Sanderson said: “We are pleased that all participants recognised the value and opportunity we see in the Wellington Duty Free business. JR are proven innovative operators and we look forward to continuing our strong relationship with them.

“I also wish to compliment the airport’s management team on the professional and thorough manner in which this process was managed. The market was properly tested and the best outcome was achieved.”

JR/Duty Free took over as the sole duty free retailer at Wellington Airport in July 2009. In October the same year it opened new stores in International Arrivals and Departures.

Wellington Airport’s international passengers grew by +16% over the last year to nearly 900,000 with more than 70 return flights per week. It is New Zealand’s third-busiest international airport and forecasts international traffic growth of around +30% over the next five years.

The new contract comes amid a major NZ$58 million airport development, which will increase the main terminal by 6,000sq m.

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