Changi Airport Group (CAG) is to extend its liquor and beauty concessions, held by DFS Venture Singapore (Pte.) Ltd and Shilla Travel Retail Pte. Ltd. respectively for two years each starting from 2020, following the expiration of the current six-year contracts.

The extended tenancy terms for the liquor concession will run from 9 April 2020 to 8 April 2022, covering 18 stores spread across 8,000 sq m of retail space in Terminals 1, 2, 3 and 4.

In the future, DFS plans to set up two exclusive brand boutiques to give travellers the chance to learn about the heritage and craftsmanship of the different brands. The retailer will also organise a wines and spirits event with tastings and masterclasses.

STRONG PARTNERSHIP

Robert Calzadilla, DFS Group Region President Asia South commented: “DFS is delighted to continue our partnership with Changi Airport Group, providing a world-class shopping experience at Changi Airport.

“We look forward to finding new ways to excite and inspire our traveling customers, offering the very best wines and spirits accompanied by exceptional concepts and activations.”

For the beauty concession, the extended tenancy terms will run from 1 October 2020 to 30 September 2022, covering 22 outlets spread over 7,400 sqm of retail space across the airport’s four terminals.

As far as The Shilla Duty Free is concerned (Shilla) the Korean powerhouse, which celebrated four successful years a the airport in October, has ambitious plans to rejuvenate its existing beauty offer. In addition to its already diverse range of perfumes and cosmetics, the retailer will bring in new brands and revamp one of its existing stores with a ‘new and inviting’ retail concept.

Large-scale beauty events with interactive workshops and special deals are also in the pipeline.

Jinhyuk Kim, Vice President, International Division, The Shilla Duty Free commented: “The Shilla Duty Free is grateful for Changi Airport Group’s decision to extend the key beauty concession for two years. We will continue our efforts to thrive with Changi Airport throughout our operations.”

Over the past four years, the airport’s two core category concessions have delivered various innovative retail concepts including duplex stores, the world’s first integrated duty free zone in Terminal 4, the Raffles Long Bar and Shilla Beauty Loft.

NOVEL RETAIL CONCEPTS

Lim Peck Hoon, Executive Vice President of Commercial at Changi Airport Group said: “We are very pleased to continue our partnership with DFS and The Shilla Duty Free for another two years. Their passion for the travel retail industry continue to deliver new ideas and novel retail concepts at Changi Airport and were instrumental in driving sales growth over the past four years.”

In the aftermath of these contract extensions, CAG said it would continue to work closely with its retailers to deliver new and memorable shopping experiences for passengers.

It will also leverage new technologies and innovations for a ‘seamless retail experience’ when passengers shop from online to offline — from before they fly to the time they board.

COMMENT: ANDREW PENTOL, SENIOR EDITOR

Last May at the inaugural TRBusiness awards in Singapore voted for by the consumer, Changi Airport Group registered a quadruple win. The retail offer and overall passenger experience at Changi Airport is second to none so it is easy to see why the four-terminal facility is such a big hit among consumers.

With Shilla and DFS Group set to operate the key beauty and liquor concessions respectively until at least 2022 and both operators already outlining plans to develop their offers, there is seemingly plenty for consumers to look forward to in the coming years. In fact, the decision to extend the contracts is a win-win situation for all parties not least the consumers.

CAG prides itself on successful partnerships with retailers such as DFS and Shilla. It will continue working in tandem with both operators to take the airport’s beauty and liquor and operations to the next level.

Speaking to TRBusiness following it success at the industry’s first consumer-voted awards, Teo Chew Hoon, Group Senior Vice President, Airside Concession said: “Passengers’ needs and aspirations take precedence in our endeavours to make Changi Airport one of the world’s best airports to shop and dine at.

“We will continue to work closely with our retailers and brands to ensure that travellers flying through Changi Airport can always look forward to an exciting retail mix, rewarding campaigns and memorable shopping and dining experiences.”

For DFS, news of the contract extension represents further positive news. The termination of its loss making Hong Kong Airport concessions have contributed to a strong rebound of profitability, while the positive start for the re-opened Galleria in Sydney, coupled with other key openings elsewhere, made for a strong first half of 2018.

The same can be said for Shilla, which holds the beauty concessions at three of Asia’s major hub airports — Seoul Incheon, Hong Kong International (HKIA) and Singapore Changi. Last year, Shilla accelerated its overseas expansion with the capture of the perfumes and cosmetics contract at HKIA.

This preceded the inauguration of its new Beauty & You stores at the airport in June.

Last year, concession sales hit a new S$2.5bn high at Singapore Changi Airport, with perfumes and cosmetics and liquor and tobacco occupying the top spots in terms of category sales.

With DFS and Shilla at the helm for several more years, this might well become a familiar pattern. One thing is certain. The consumer is in safe hands.