AUSTRALIA. Sydney Airport is offering a range of bidding options in its duty free tender, revealed yesterday by The Moodie Report.
As reported, the airport operator yesterday called for Expressions of Interest for the contract, commencing February 2015.
The airport’s current duty free retail contract with Nuance Australia (trading as SYD Duty Free) expires next year. It comprises six duty free outlets at Terminal 1 (the international terminal), occupying approximately 7,600sq m of retail space, plus one domestic tax paid travel retail offering at T2 (the domestic terminal).
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“It is anticipated that… bidders will be required to bid for all packages 1 to 3 for a compliant bid [and] that packages 4 and 5 will be optional“ |
Andrew Gardiner Retail General Manager Sydney Airport |
Today Sydney Airport Retail General Manager Andrew Gardiner told The Moodie Report that there will be various elements to the bids. These, to be examined in detail in this week’s edition of The Moodie Report e-Zine, are as follows:
Compliant bids
1. T1 Departures: Four locations – T1 Landside, Central Walk-Through; Express Pier B; Express Pier C; T2: Studio store
2. T1 Arrivals (two locations): Pier B Arrivals, Pier C Arrivals
3. Total Departures and Arrivals: The total of 1 and 2 above
Optional Bids
4. Luxury Products and Brands: Specified area within the Retail Forum in the Central Lounge of T1
5. Visionary Bid: An invitation to submit an optional proposal aimed at “pushing the boundaries” in terms of a different business model to operate duty free at Sydney Airport. This would request an innovative and creative approach that will bring fresh thinking to our duty free business.
Gardiner confirmed: “It is anticipated that, as part of the RFP process, bidders will be required to bid for all packages 1 to 3 for a compliant bid. It is anticipated that packages 4 and 5 will be optional.”
Strong interest in the tender is certain, especially given the potential multi-retailer scenario. Besides the incumbent Nuance, JR/Duty Free, LS travel retail and Heinemann Asia Pacific (which recently added two specialist outlets at Sydney, including a National Geographic store and A Little Something gourmet shop) are all likely candidates, while both Korean travel retail giants, Lotte Duty Free (which bid last time around) and The Shilla Duty Free may be among the mix, as could be King Power Group (Hong Kong).
DFS (which has a strong downtown presence) is another one to watch, while World Duty Free Group and Dufry are likely to at least examine the opportunity.
Last time around, in 2006, The Nuance Group retained its concession in the face of challenges from DFS Group; Aelia/Newslink; JR/Duty Free; HMSHost/Aldeasa (now World Duty Free Group); Lotte and Dufry.
Contract duration details for the new concession/s are not yet available.
Responses from interested parties must be submitted by 4pm on 18 February 2014. A copy of the Expressions of Interest document can be obtained by contacting Doug Benham, Head of Duty Free, Retail and Special Projects, Sydney Airport, on +61 2 9667 9631/+61 478 401 720 or by e-mail at doug.benham@syd.com.au
For more information about Sydney Airport, visit www.sydneyairport.com.au
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Let battle commence: Sydney Airport is Australasia’s busiest gateway and interest in the duty free opportunity is certain to be high |
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