King Power Hong Kong subsidiary, Shanghai Orient King Power Travel Retail Co Ltd has reported year-on-year increases from several of its branded shops across domestic terminals 1 and 2 at Shanghai Pudong International Airport.

The company, which first entered the airport (Terminal 1) when it opened in 1999, has overseen the opening of more than 40 shops between 2015 and 2017 across both terminals. This was part of an overhaul of the domestic Terminal 1 departures offer which was completed in 2016.

SHOP INTRODUCTIONS

Phase one of the overhaul saw the introduction of seven shops (eight international brands) which were Innisfree, Hour Passion, Michael Kors, Kiehl’s, Furla, MaxMara, Montblanc and Swarovski.

A total of eight shops with 11 international brands also opened as part of phase two. These were Lacoste, Paul & Shark, Tommy Hilfiger, MCM, Shanghai Tang, Emporio Armani, Calvin Klein, Disney Souvenir, Nautica, Tumi and Versace.

The renovation of the Terminal 1 building just after security, where all major brands are located, actually started in 2012/2013. This led to some flights moving to Terminal 2 and a decrease in business volume.

Terminal 1, where the old stores were renovated between 2010 and 2011, comprises 14 boarding gates on the first floor and 12 gates downstairs. The terminal serves a number of carriers including Shanghai and China Eastern Airlines. Orient King Power operates around 3,000sq m of retail space in the terminal.

As far as Terminal 2 is concerned, Shanghai Orient King Power secured a five-year contract in 2017 covering around 2,200sq m of retail space and 26 shops. The offer features beauty, liquor and tobacco, fashion and general merchandise.

Brands include Emporio Armani, Hugo Boss, Shang Xia, Montblanc, Tumi, Roberto Cavalli Sport, Diesel and Lacoste.

YEAR-ON-YEAR INCREASES

Mackintosh Feng, General Manager, Shanghai Orient King Power Travel Retail Co Ltd told TRBusiness: “We have recorded year-on-year increases from many brands in T1 and T2. Two or three years ago not all the brands were mature. Now, most have matured and we are receiving positive feedback from consumers.”

He added: “Ready-to-wear is our number one category and we have good business across the board from international brands. At the moment, we are simply focusing on our daily operations and trying to raise standards and service for consumers. That is the priority for this year.”

In terms of the mix of shops in Terminal 1 and Terminal 2, Feng reveals details of ‘very tiny brand replacements’.

“We replaced Shanghai Tang with Bally in Terminal 1 because Shanghai Tang was undertaking some internal adjustments. The store opened in April and has a modern style.”

Regarding other commercial projects, TRBusiness can confirm Orient King Power submitted bids for two duty paid concessions (18 shops) and (16 shops) at Shanghai Hongqiao Railway Station and participated in the retail and food and beverage tender for concessions in the new PVG Satellite Terminal due to open in September.

TRBusiness understands China Duty Free Group, which extended its contract at the railway station in 2016 for three years, will continue operating the concession. TRBusiness has also learnt that Lagardère Travel Retail, which has a strong presence in China, has triumphed in the Pudong Satellite Terminal tender.

Stay close to TRBusiness.com for more information on the Shanghai Hongqiao Railway and Shanghai Pudong Satellite Terminal tenders.