China Duty Free Group and Avolta confirmed as Shanghai Pudong and Hongqiao duty-free contract winners

CHINA. China Duty Free Group (CDFG) and Avolta – as Dufry (Shanghai) Commercial Co – have today (16 December) been confirmed as the victors in the combined duty-free tender for Shanghai Pudong and Hongqiao international airports (see full details below).

As revealed by The Moodie Davitt Report on 11 December the two companies topped the bidding result. Today’s announcement by tenderer, Shanghai International Airport Co and tender agent Shanghai Shangzi Construction Engineering Consulting Co, formally confirmed the awards.

As reported, incumbent Sunrise Duty Free was unable to bid due to a clash with its 51% parent company CDFG.

The Moodie Davitt Report broke today’s story simultaneously on this website and our daily WeChat platform, China Travel Retail Express* out of Haikou, Hainan province

Tender structure

As reported, the tender was divided into three parts. Bidders were free to choose which ones to bid on.

  • Concession 1: Departures and arrivals duty-free shops in the international areas of Terminal 1 (T1) and Satellite Hall 1 (S1) at Shanghai Pudong International Airport. WINNER: Dufry (Shanghai) Commercial Co 
  • Concession 2: Departure and arrival duty-free shops in the international areas of Terminal 2 (T2) and Satellite Hall 1 (S2) at Shanghai Pudong International Airport. WINNER: China Duty Free Group Co
  • Concession 3: Departure and arrival duty-free shops in the international area of Terminal 1 (T1) at Shanghai Hongqiao International Airport. WINNER: China Duty Free Group Co

According to the tender guidelines, a single bidder could not be awarded both Concession 1 and 2. However, a bidder winning either Concession 1 or Concession 2 remained eligible to also win Concession 3.

标段总览

项目分为三个标段,投标人可以自由选择性投标。定标原则为择优录取,标段一与标段二不可兼中兼得;但标段一或二的中标者,可以兼得标段三。

  • 标段一:浦东机场(T1航站楼及S1卫星厅国际区域场地)的进出境免税店
  • 标段二:浦东机场(T2航站楼及S2卫星厅国际区域场地)的进出境免税店
  • 标段三:虹桥机场(T1航站楼国际区域场地)的进出境免税店
The joint announcement was made today from Shanghai International Airport Co and tender agent Shanghai Shangzi Construction Engineering Consulting Co

The full results

Concession 1: Dufry (Shanghai) Commercial Co

Quoted offer: Fixed Fee (Unit Price) ¥3,141/㎡/month. Commission rate for various categories 8%-24%

Starting date and tenure: 1) Term of transfer of overall operating rights: The term of this contract for the transfer of operating rights is 3+5 years, from 1 January 2026 to 31 December 2033.

The delivery time of each site shall be based on the actual delivery time of the tenderer, but the contract termination date is 31 December 2033.

Phased Transfer of Operating Rights Term

Phase 1: The operating rights transfer term is 5 years, from 1 January 2026 to 31 December 2030. If the contract is successfully completed after the fourth year, the contract will be renewed for Phase 2 if the applicant passes the assessment by Party A; otherwise, the contract will terminate.

Phase 2: The operating rights transfer term is 3 years, from 1 January 2031 to 31 December 2033.

Concession 2: China Duty Free Group Co

Quoted Offer: Fixed cost (unit price) ¥3,090/㎡/month. Commission rate for various categories 8%-24%

Starting date and tenure: The term of transfer of operating rights under this contract is 5+3 years, from 1 January 2026 to 31 December 2033.

Phased Transfer of Operating Rights Term

Phase 1: The operating rights transfer term is 5 years from 1 January 2026 to 31 December 2030. If the contract is successfully completed after the fourth year, the contract will be renewed for Phase 2 if the applicant passes the assessment by Party A; otherwise, the contract will terminate.

Phase 2: The operating rights transfer term is 3 years, from 1 January 2031 to 31 December 2033.

Concession 3: China Duty Free Group Co

Quoted offer: Fixed fee (unit price) ¥2,827/㎡/month. Commission rate for various categories 8%-22%.

Starting date and tenure: The term of the transfer of operating rights under this contract is 5+3 years, from 1 January 2026 to 31 December 2033.

Phased Transfer of Operating Rights

Phase 1: The transfer period for the operating rights is 5 years, from 1 January 2026 to 31 December 32030. If the contract is successfully completed after the fourth year, the Phase 2 contract will be renewed if the performance evaluation by Party A is passed; otherwise, the contract will terminate.

Phase 2: The transfer period for the operating rights is 3 years, from 1 January 2031 to 31 December 2033.

TENDER ALERT 

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Please send relevant material, including images, to Martin Moodie at Martin@MoodieDavittReport.com for instant, quality global coverage.

*Scan the QR codes via WeChat to visit our platforms. Stories related to the China travel retail sector at home and abroad are featured in this unrivalled dual service. For native content opportunities please contact Zhang Yimei (China) at Yimei@MoodieDavittReport.com or Irene Revilla (international) at Irene@MoodieDavittReport.com. For editorial please reach out to Martin Moodie at Martin@MoodieDavittReport.com
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