A joint venture comprising China Duty Free Group (CDFG) and King Power Macau (KPM) has been awarded the five-year duty free contract at Macau International Airport (MIA).

KPM, part of King Power (HK), currently operates the Southside DF concessions at MIA, which is expected to handle seven million pax between 2017 and 2019.

The retailer was the sole duty free operator at the airport until 2014, when a dual operator model comprising Sky Shilla Duty Free and KPM was introduced.

Its long-term future at the airport was in doubt when KPM resigned the concession at the start of the year before the expiry of the previous concession in 2019.

TENDER PROCESS

This prompted a duty free tender to be issued covering 1,130sq m located at the South Departure level.

The tender comprised four stores totalling 891sq m offering liquor and tobacco, candies and souvenirs, general merchandising, international fashion brands and perfumes and cosmetics.

Four perfumes and cosmetics kiosks spanning 239sq m also formed part of the package.

Victory in Macau completes a trio of key tender triumphs for CDFG, which runs 249 duty free outlets in China and overseas.

In the past year, CDFG was awarded the Hong Kong International Airport duty free liquor and tobacco concession (in partnership with Lagardère Travel Retail). 

It also secured the eight-year duty free contract (with subsidiary Sunrise Duty Free) at Beijing Capital International Airport Terminal 2 and Terminal 3.

CDFG President Charles Chen (left) said: “With our network and expertise of serving the Chinese traveller we are confident, we will be able to provide MIA, our supplier partners and, most importantly, the MIA customer, with an outstanding retail experience.

“The partnership with KPM adds tremendous value to our bid, as the company has long-term experience and knowledge of the business at MIA.

“With this understanding plus their international reach as part of King Power Group (Hong Kong), we consider them to be valuable partners.”

VALUE PROPOSITION

Sunil Tuli, Managing Director, Duty Free and Travel Retail, King Power Group (HK) commented: “From our point of view, this joint venture between our two companies will give the best value proposition to all parties.

“We have operated the duty free business at MIA for 23 years and have in depth knowledge of the demographics and buying habits of our travelling customers at the airport.

“As a result, we are confident we are able to provide the most efficient and effective duty free operations in partnership with CDFG at MIA. We have a long history and association and pleased to be working together.”