Dufry Group CEO Julían Díaz believes the new contract will increase revenues and profitability for both partners.

Airport operator AENA has extended Dufry Group’s current concession contract covering duty free shops at 25 Spanish airports for up to five years.

The new contract will begin once the current concession agreement expires on 31 October 2020. The structure of the minimum annual guarantee will mean an average annual increase of 1.56%, while the level of the variable concession fee component remains unchanged.

Initially spanning three years, the agreement can be extended in two steps of one year at a time. The extensions will run in parallel with the AENA investment programme and the maximum duration of the extended contract will be 31 October 2025.

FIVE-AIRPORT PILOT PROGRAMME

Dufry will now roll out commercial initiatives and best practices following a testing process across five pilot airports (Barcelona T2, Malaga, Alicante-Elche, Gran Canaria and Bilbao). Testing has taken place since 2018 with the ultimate aim of improving commercial performance.

Initiatives and best practices include pricing policy, improvement of shop design and layout, assortment and brand optimisation, marketing and digital partnership actions and sales staff incentives.

Julían Díaz, CEO, Dufry Group, commented: “I am most pleased with the contract extension awarded by AENA and the renewal of our long-term partnership. We are convinced that the extension and even closer cooperation of our local teams will increase revenues and profitability for both partners.

“This will allow us to support AENA in its upcoming important investment programme to further develop the Spanish airport infrastructure. I would like to thank AENA for their renewed confidence in Dufry. Our commitment is to create the best shopping experience throughout the Spanish airports, bringing the most exciting shop concepts for local and international travellers.”

The new contract covering 25 Spanish airports will begin once the existing concession agreement expires on 31 October 2020.