AUSTRALIA. Sydney Airport is to have a powerful new line-up of jewellery store retailers in the international terminal following its recent open tender.
“The RFP received strong domestic and international interest,” said Bob McFadyen, General Manager, Retail and Commercial Development.
“As a result we have been able to select a number of top-quality operators that will provide customers with an exciting new mix of jewellery offerings in the international terminal”.
“By constantly upgrading the retail offering to ensure its relevance to our customers we aim to provide an improved retail experience to the millions of passengers and visitors who pass through the international terminal each year”.
The new operators are:
• DFS Group will open two Watch Gallerias and an Omega concept outlet in the security zone (past immigration). The Watch Gallerias will provide a premium watch offering, including brands such as Tag, Omega, Bvlgari, Cartier, Hermes, Gucci, Longines, Armani, Coach and Burberry. The stores are expected to open in May.
• Destiny Jewellers has opened one store in the security zone. This store sells a range of opals, south sea pearls and pink Argyle diamonds, with prices ranging from A$50 to A$30 000.
• Swarovski, the world’s leading brand of cut crystal, and a terrific performer in the travel retail environment, will operate a store in the public area (pre-immigration) in the international terminal. The store will feature a range of Swarovski’s signature crystalline figurines, as well as the brand’s more contemporary jewellery range and is expected to open in March
• Guess will open a store in March in the public area in the international terminal. The store will offer leading style trends from the US and Europe immediately delivered into the Australian market. The store will sell Guess branded handbags, accessories, watches, sunglasses and jewellery.
Watches and jewellery also remain available in the Downtown Duty Free outlets run by The Nuance Group.
By expanding the range of outlets and product offer available, Sydney Airport expects to be able to better service the customers’ needs, and achieve increased overall sales volume with little or no effect on existing retail concepts.
McFadyen told The Moodie Report: “We have elected multiple operators to better service market expectations with a broader range and extended variety. We and the operator of the first store trading (Destiny Jewellers) are particularly pleased with sales figures. Traditionally this site has relied on watch sales to underpin trading; the focus now is jewellery with minimal watches and sales are up.
“All this bodes well for the introduction of the Watch Galleries – we look forward to the addition of the other new operators over the coming months.”
19 April deadline for duty free responses as powerful short-list lines up bids
In related news, and as reported by The Moodie Report late last night, Sydney Airport has given short-listed companies in its forthcoming duty free and tax free contract RFP a deadline of 19 April to respond.
A number of major international and local companies were short-listed following a call for Registration of Interest in November 2005. An announcement on the successful bidder is expected in July with the new contract commencing on 1 November 2006. The incumbent is The Nuance Group which has run the business since it acquired Downtown Duty Free in the mid 1990s.
McFadyen said that the call for Registration of Interest had attracted a strong field of international and local companies.
He commented: “We are not looking at simply sustaining the existing business under a different brand or contract, rather we are seeking new ideas and new thinking to deliver a better service to all segments of the growing market base irrespective of nationality, purpose of travel or socio-economic status.”
While names of the prospective bidders will not be released they are known to include the incumbent as well as a powerful line-up of industry heavyweights. Aldeasa, Alpha, Dufry, DFS Group and King Power (HK) are certainly in the mix as well as Australia/Israel travel retailer James Richardson. World Duty Free/Crossbar Associates joint venture Global Airport Services is another likely runner. French company Aelia had also declared its hand earlier. A leading South Korean retailer – Lotte is the most likely – may be in the frame, local sources said.
Collectively that makes for one of the most impressive short lists seen in recent industry history. That in turn underlines the sheer scale of the challenge ahead if Nuance is to retain its contract. Refreshingly, however, it is vowing to “win” the business, rather than “defend” it.
Sydney Airport Corporation said that sales growth should be the key focus of the retailer and airport operator. Hence business development and marketing strategies which lift penetration rates across all segments of the market will be an important assessment criteria.
Sydney Airport is planning a major upgrade of the international terminal with planned expenditure of A$200 million under Project STAR. This will bring a dramatic and positive change to the overall terminal and retail environment, the corporation said. “It is expected that duty free will be a major beneficiary of this planned development delivering a stepped change in performance,” it added.
McFadyen commented: “This is a significant contract from Sydney Airport’s perspective and we are seeking to appoint a retailer with established experience and success in developing and managing leading duty free businesses to join us in delivering the next exciting phase of duty free development at the airport.”
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MORE ON THE SYDNEY RFP
Sydney Airport ponders strong response to duty free offer; RFP set for February – 16/12/05
