CKS duty free contracts update

By Administrator |

Further details have emerged, following our coverage yesterday of the award of a 12 year duty free contract to Ever Rich Duty Free at CKS International Airport.

It emerges that Ever Rich Duty Free has won the business in the South Wing (C), which is one part of the duty free tenders for CKS International Airport terminal two in Taipei. The C Wing contract covers around 7,700sq m of retail space. Ever Rich is managed by CEO Simon Chiang.
Meanwhile, Tasa Meng has been awarded the duty free contract in the North Wing (D), which is another part of the duty free tenders for CKS International Airport terminal two in Taipei. The D Wing covers around 10,000sq m of retail space. Tasa Meng is run by President Nancy Ku.
It is understood that four companies were finally shortlisted for the contracts and these include the aforementioned, DFS Group and Hsin Tung Yang Co. Ltd, although the airport authority has still to announce the official result.
Both concessions cover duty free departures and arrival shops with the duration of contracts running for 12 years from September 1 2006 until August 31 2018.
Categories of merchandise that each operator will be allowed to sell include liquor, tobacco, cosmetics and fragrances and general merchandise. There is also scope for electronic shops, fashion boutiques, a bookstore, a multi-media shop and a drugstore.
It is further understood that the concessions are based on a percentage rental related to sales turnover, or a minimum guarantee amount. For the South Wing the minimum amount is around TWD.20m ($625,000) in the first year in royalties, with +2% added every subsequent year, depending on fluctuations in the consumer price index.
For the North Wing, the minimum amount is around TWD.11.5m ($359,000) in the first year in royalties, with +2% added every subsequent year, depending on fluctuations in the consumer price index.

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