NETHERLANDS. Amsterdam Airport Schiphol today announced that it plans to operate its main liquor and tobacco concession in-house, from 1 January 2007.
The contract for the business in the See Buy Fly area in Departures is operated by KLM Tax Free Services. KLM’s contract expires on 31 December.
Schiphol Airport said: “Following successful consultations both parties have signed a letter of intent, which lays down the conditions for taking over the activities. The concession involves six shops and the employment of over 150 staff. It has been laid down in the letter of intent that the staff will be employed by Amsterdam Airport Schiphol and will retain their jobs.”
The Moodie Report understands that Schiphol Airport will take on not only shop staff, but also senior management and buyers too. At this stage it is unclear whether all of those offered positions with the new operator will accept.
Schiphol added: “Taking over the liquor and tobacco concession is in line with the strategy of Schiphol Group’s Consumers Business Area, the aim of which is to further reinforce retail operations.”
The news comes as a big blow to KLM Tax Free Services, long-time operator of the liquor and tobacco contract. Last year it opened a 1,000sq m megastore in partnership with fragrances and cosmetics specialist Kappé Schiphol.
UPDATE: Shortly after we revealed this story Martin Moodie spoke to Schiphol Group about the rationale behind the decision. Here is what the company had to say.
What led Schiphol Group to decide to take such a key product group in-house after so many years with a concessionaire?
Taking over the liquor and tobacco concession is in line with the strategy of Schiphol Group’s Consumers Business Area to further reinforce non-aviation revenue. Over the years Amsterdam Airport Schiphol has gained a great deal of retail expertise and aims to utilize the experience gained by playing a more active part in retail activities at the airport. With the current concession expiring on 31 December 2006, the opportunity has arisen to do so.
Will you be creating a new department to facilitate this operation?
The liquor and tobacco concession will be operated by the Consumers Business Area. Further details will be worked out on the basis of the letter of intent.
Do you have any plans to make similar moves with your other product categories – for example confectionery or perfumes & cosmetics?
As stated above, we see the expiry of the current liquor and tobacco concession as an opportunity to expand our retail activities. This is a new activity for the airport, which will have our undivided attention. It is too early to say anything about further concessions at this point in time.
NOTE: This story was broken worldwide by The Moodie Report VIP News Alert, a service reserved only for stories of high importance to the industry and sent to the 7,100-plus readers of The Moodie Report pdf and e-newsletter. The service is sponsored by BPI.
MORE STORIES ON KLM TAX FREE SERVICES
Kappé and KLM Tax Free Services join forces to open Schiphol ‘megastore’ – 24/02/05
