SINGAPORE. Incumbent retailer Sincere Watch Duty Free has retained the key watches concession at Singapore Changi Airport departure/transit lounge east, terminal one.
As revealed earlier by The Moodie Report, Sincere was the top bidder in the tender which closed on 20 January, heading off DFS Venture Singapore, Gassan Diamonds (Singapore) and Watches of Switzerland.
Sincere bid aggressively, offering 10% of total monthly gross sales or a minimum monthly guaranteed payment of S$228,000, whichever is higher, for the concession in the T1 departure/transit lounge east. The contract is for three years with a two-year renewal option.
While some watch suppliers criticised the bid as being excessive, the company believes it is a credible, sustainable bid, one that over the contract period is not as far in excess of the second bid as critics have alleged.
Second bigger DFS offered a more complex formula. This involved 10% of total monthly gross sales or a minimum monthly guaranteed sum of S$128,000 or a minimum monthly guaranteed sum of S$128,000. DFS stipulated that this minimum monthly guaranteed sum would not be subjected to upward passenger traffic movement adjustment) plus; 28% of incremental monthly gross sales exceeding S$550,000 up to monthly gross sales of S$650,000 plus; 30% of incremental monthly gross sales exceeding S$650,000, whichever is highest.
The other Changi airport watch concessions in terminal two – held by Gassan Diamonds and DFS Singapore – also come up for bid later this year.
