China Duty Free Group (CDFG) subsidiary Sunrise Duty Free has today (8 September) and Shanghai International Airport Co have formally signed the seven-year contract to operate the duty free stores at Shanghai Pudong and Hongqiao International Airports.

As reported, Sunrise, which has been the incumbent duty free operator at both airports for many years, triumphed in a competitive tender in July. It also sold a 51% share of the company to CDFG, as  in March 2017, as exclusively revealed by TRBusiness.

A CDFG statement seen by TRBusiness on 20 July, indicated Sunrise would operate an enlarged 2,088sq m area at Hongqiao (up from 1,500sq m) and 16,915sq m (up from 6,600sq m) at Pudong, which is readying a duty paid tender in the new satellite hall, as first reported by TRBusiness.

Today’s signing ceremony was attended by various dignitaries including CDFG President and Sunrise Shanghai Chairman Charles Chen, Sunrise Duty Free Founder, Madam Zhang Fengyi and Shanghai International Airport Co Chairman, Jia Ruijun, General Manager Hu Zhihong and Deputy General Manager Huang Wei.

Ruijin hailed the contract signing as a ‘major event’ in the Chinese duty free industry and of ‘great significance.’ He added: “Over the past 20 years, Sunrise has achieved great success in running the duty free business at Shanghai Pudong and Hongqiao International Airports.

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“The strong support of shareholders such as China International Group and CITIC Group Corporation Limited (formerly known as China International Trust Investment Corporation), will bring new momentum to the development of the duty free business in Shanghai International Airport.

“It is hoped the quality of duty-free shopping will improve and help Shanghai International Airport become the world’s leading aviation hub.”

CDFG’s Chen, who began by expressing his gratitude to Shanghai Airport Group and Shanghai International Airport Company for their ‘trust and affirmation’ said CDFG had achieved a ‘leap forward’ in recent years with a more diversified product offer among other elements.

He added: “We have made great progress in terms of operation management, marketing and logistics. Chinese tourists have become the force of global duty free shopping. As a local tax-free enterprise in China, we have the responsibility to make a greater contribution to the prosperity and development of China’s tax-free industry.”

Chen also highlighted the Shanghai management team’s ‘wealth of operational experience’ and high level management capabilities. He said it would not disappoint in terms of meeting the expectations of Shanghai Airport on elements such as design, brand investment and commodity prices among other aspects.

Shanghai International Airport Co’s Hu Zhihong and Sunrise’s Zhang Fengyi, said the two parties would maintain a good cooperative relationship and work together to ensure Shanghai International Airport becomes a new landmark for the Asia-Pacific duty free industry.

CDFG/Sunrise and the airport operator also pledged to work together over the next seven years to enhance the shopping environment at Shanghai Pudong and Hongqiao Airports, further promote the development of the duty free business, bring higher quality to consumers and create a ‘Shanghai Shopping’ brand.