MALAYSIA. Malaysia Airports is assessing bids for two major perfumes & cosmetics outlets in a single contract at klia2 after failing to conclude an award with initial victor The Shilla Duty Free.
As reported, the Korean travel retailer received letters of offer in November 2012 for two perfumes & cosmetics stores under the brand name Beauty Collection at the Satellite International Departure, Level 2 (see graphic below for locations with the proposed Shilla outlets in pink).
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The five-year contracts for the 131sm and 103sq m stores were due to begin in April 2013 but have been postponed along with all other concessions by the delay in the budget terminal’s opening (now slated for 2 May this year).
Malaysia Airports Senior General Manager Commercial Services Puan Faizah Khairuddin told The Moodie Report: “These [Shilla] outlets have been tendered. The tender briefing was done on 20 January with an overwhelming response. Most interestingly, to avoid further fragmentation we have packaged both the outlets [in a single tender].”
Bids close on 20 February.
At the time of the initial contracts announcement, Shilla hailed the success as its first overseas cosmetics & perfume concession. Since that point it has been awarded the hotly contested Singapore Changi Airport perfumes & cosmetics contract, ahead of incumbent Nuance-Watson (Singapore) and other short-listed contenders Lotte Duty Free and World Duty Free Group.
A senior spokesman at Shilla confirmed the company would not be proceeding at klia2. The retailer is understood to have had concerns about the non-exclusive nature of the concessions, though Malaysia Airports contends that they were all offered separately from the start.
Two other companies were awarded perfumes & cosmetics businesses at the terminal – local retailer Eraman as part of the biggest outlet, a duty free mega store also offering liquor & tobacco; and Heinemann Asia Pacific which secured 1,240sq m of space in four locations before the sky bridge (pictured), including a walk-through concept selling perfumes & cosmetics, confectionery, accessories and local specialities.
One known bidder is Nuance-Watson, which would be very eager to compensate for its painful loss at Changi. Such an outcome would be an intriguing twist of fate after Shilla’s success in Singapore.
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