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USA. Wine retailer and food & beverage operator Vino Volo, speciality and convenience retailer Hudson Group and electronics chain InMotion have been selected to open outlets at General Mitchell International Airport, pending approval by the County of Milwaukee (scheduled for 10 September).
Vino Volo was chosen in a retail wine RFP for an outlet offering an international and regional wine retail selection as well as wines by the glass. The company, which operates at 34 stores in 24 airports across North America, will operate an outlet in Concourse D for a term of seven years (with the option of three additional one-year terms).
Vino Volo will pay a minimum annual guarantee of US$90,000 or a combination of 12% of retail sales and 13% of food & beverage sales, whichever is higher. It will invest US$531,293 in developing and equipping the unit.
InMotion beat competition from Hudson Group in a competition for electronics retail outlets. It will operate stores in concourses C and D in partnership with disadvantaged business enterprise APW Holdings, with a similar seven-year duration as Vino Volo.
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Vino Volo, pictured at Montreal Trudeau Airport, will open its thirty-fifth outlet in Milwaukee |
The retailer offered a MAG of US$140,000; or 11% of gross receipts up to US$1.3 million on Concourse C and 13% of gross receipts above that, and 11% of gross receipts derived from retail sales up to $1.0 million on Concourse D and 13% of gross receipts above that. It will invest around US$595,000 in developing the shops.
Hudson Group will develop and operate fashion accessories concessions under its Affordable Luxuries concept on Concourse C and Concourse D, also for seven years. It will pay a MAG of US$81,621 or 13% of gross receipts derived from retail sales, and will invest around US$477,491.
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The airport is aiming to transform its commercial offer over the next five years |
The selection of the three companies follows the airport’s request for US$55 million in future funding in order to centralize security checkpoints and create more space for retail and F&B.
The request was submitted to the county as part of planning for the allocation of Milwaukee resources over the next five years. The airport is seeking US$5 million for the project in 2017, US$25 million in 2018 and US$25 million in 2019.