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NEW ZEALAND. Regency Tax & Duty Free, majority owned by The Nuance Group, has announced that its Victoria Street downtown store in Auckland will close on 29 September
The company said that the store lease had come up for renewal and will not be extended. The retailer is currently hosting a closing down sale, offering discounts of -30% on all wines and watches and -20% on consumer technology.
The closure follows soon after Regency’s bitter disappointment at the decision by Auckland International Airport Limited (AIAL) to award its exclusive duty free contract to DFS Group, effective August 2009.
In May AIAL called for tenders from its two existing duty free retailers, Regency and DFS Group, for a single on-airport duty free business to run until June 2015, including a lucrative doubling of Arrivals shopping space. Regency had been confident of success in the bid but was surprised by a strong DFS desire (and financial offer) for the business.
That loss has undoubtedly provoked a reassessment by Nuance of its position in the Australasian market.
In February The Nuance Group announced a new partnership in the region with travel catering specialist Newrest. Under the terms of the agreement Newrest acquired 40% of the shares of Nuance Australia & New Zealand, including Regency. The deal was worth around A$66 million (€40 million).
MORE STORIES ON REGENCY TAX & DUTY FREE
Duty free landside store ready as Wellington Airport posts “˜robust’ traffic growth – 14/09/07
Nuance-owned Regency prepares to open new store at Wellington Airport – 15/08/07
Website of the Week: Regency Duty Free – 16/08/07
DFS delight, Nuance disappointment, as Auckland chooses single duty free retailer – 10/07/07
