Charles Chen, President of CDFG, has confirmed to TRBusiness that the company has effectively won the Terminal 2 and Terminal 3 duty free concessions at Beijing Capital International Airport (BCIA), whilst also confirming that CDFG has acquired 51% of Sunrise Duty Free.

He told TRBusiness today that the company found out the news about the win at Beijing Airport this afternoon. However, CDFG will release an official statement on Tuesday in accordance with legal protocol in China, which stipulates a three-day window before the award can be made official.

He also told TRBusiness that he obviously very happy with the outcome of this tender and although it has been reported that CDFG won the T2 concession and Sunrise Duty Free won the T3 concession, as CDFG acquired 51% of Sunrise earlier this year CDFG has effectively won both concessions.

CDFG President, Charles Chen.

Chen told TRBusiness that at this stage the company does not know which logo and branding the Beijing Airport duty free shops will carry.

A LONG TIME COMING…

BCIA released invitations ‘to Chinese companies’ interested in bidding for its departure and arrivals duty free stores back in February, however Sunrise Duty Free’s original 10-year license actually expired two years ago.

Sunrise has been operating all of Beijing Airport’s duty free shops under a temporary license extension for the last two years after its original 10-year concession expired at the end of 2015. The duty-paid travel retail shops are operated separately.

As reported by TRBusiness back in March, Beijing and Shanghai airports duty free concessionaire Sunrise Duty Free has sold a 51% share in the company to CDFG.

Sunrise has been operating all of Beijing Airport’s duty free shops under a temporary license extension for the last two years after its original 10-year concession expired at the end of 2015. The duty-paid travel retail shops are operated separately.

This merger will obviously create a huge duty free force with coverage across all three Beijing and Shanghai airports – plus CDFG’s comprehensive 230-strong network of border stores, airport outlets, its huge Sanya downtown store and its small overseas duty free business in Cambodia

CDFG has already benefited hugely from last year’s merger of its parent CITSC with the China National Travel Service Group, which effectively created a RMB120bn ($19.2bn) giant.

Based on information that Beijing Capital Airport gave to TRBusiness correspondent David Hayes recently, the airport’s estimated duty free sales in 2016 were US$700m (RMB 4.8bn) while the estimated duty paid travel retail sales were $140m (RMB 950m).