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“We are keen to attract proposals from duty free concessionaries with a strong track record in providing a high quality retail offering“ |
Scott Norris General Manager Commercial Services Perth Airport |
AUSTRALIA. In big breaking news with profound significance for Australian travel retail, Perth Airport Pty Ltd (PAPL), the owner and operator of Perth Airport, announced today that it is to commence a competitive process to select a duty free retailer.
Incumbent retailer The Nuance Group’s concession expires in October 2013. The competitive process has been designed to ensure a seamless transition to the new contract for duty free operations, PAPL said.
A pre-qualification schedule commenced today. This will select organisations to be invited to participate in the Request for Proposal stage of the process for the rights to operate the duty free concession from November 2013.
“Pre-qualified organisations will be of a suitable scale, have well-defined development strategies for Perth and the Australian market and a strong track record in providing a high-quality retail offer,” said PAPL.
“The new duty free concession at the International Terminal includes three new landside and airside (departures and arrivals) stores, with a total area of 2,550sq m which form part of the exciting redevelopment of Perth Airport, currently underway.”
“We are keen to attract proposals from duty free concessionaries with a strong track record in providing a high-quality retail offering. The new duty free stores will be relocated and expanded as part of the redevelopment of the airport, and will have contemporary layouts in high exposure areas of the terminal,” said Perth Airport General Manager Commercial Services Scott Norris,
A Request for Proposal process with pre-qualified organisations will commence in July. PAPL anticipates concluding the selection process by October. “This timeframe will enable the successful operator time to work with the airport to design and fit out new stores,” the airport company said.
Over the past seven years, the number of passengers travelling through Perth Airport has doubled to 12 million in 2011, making Perth Airport the fastest-growing capital city airport in Australia. Perth to Bali is the country’s eighth-busiest international route.
Importantly, international passenger movements increased by +7.3% to 3.37 million passengers on the prior calendar year, which reflects strong economic conditions, competitive air fares and increased seat capacity from a number of existing airlines, PAPL said.
COMMENT: So the waiting game is over. All eyes of the Australian travel retail industry – and beyond – have been on the West Australian airport for many months, as Nuance and its rivals waited for PAPL to decide whether to extend the incumbent’s contract or go to the market.
Perth is key in terms of profitability for The Nuance Group Australia and the business is steadily being rendered more significant by the airport company’s ambitious development plans and the growth in international traffic. That’s partly down to West Australia’s mining boom and partly to the city’s proximity to Asia (half the flying team compared with Sydney). However, those pluses are offset to a degree by the recent draconian reduction in Australian in-bound tobacco allowances, which will hit tobacco sales hard on arrival.
Companies such as LS travel retail, JR/Duty Free and Duty Free Stores New Zealand are all likely challengers to Nuance for the concession. DFS, The Shilla Duty Free and Lotte Duty Free are other possibilities.
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Perth Airport is a key retail location for The Nuance Group Australia |
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