A 10-day appeals window will apply prior to the final award of the contracts.

Airport Retail Norway AS (part of Airport Retail Group) and Travel Retail Norway AS  (the JV between Norse Trade AS and Gebr. Heinemann SE & Co. KG) have secured contracts to operate tax free and travel value shops across Avinor’s network of airports.

As reported, the 17 duty free shops at 11 airports and travel value shops at seven airports had attracted heightened interest after the Norwegian airport operator revealed its tender in January this year.

NOK 18 BILLION OVER FIVE YEARS

The winning tenders, which are subject to a 10-day appeals window prior to the final award of the contracts, are forecast to generate NOK 18 billion in revenue for Avinor over a five-year period.

ARN will operate tax free and travel value stores at the airports in Kristiansand, Ålesund, Molde, Kristiansund, Bodø, Evenes and Tromsø.

Meanwhile, TRN will run tax free and travel value stores at the airports located in Oslo, Bergen, Stavanger and Trondheim.

“Faced with stern competition, TRN and ARN both submitted the best tenders evaluated in terms of quality and finance,” stated the airport.

Avinor CEO Abraham Foss commended the outcome and stated that the operator looks forward to working with both the winners.

Avinor says it received tenders from a total of six bidders. The contracts will cover a five-year period from 1 January 2023 and are worth a total of NOK 30 billion.

TRN and ARN are long-standing partners of Avinor.

In 2019, revenue from tax free stores accounted for 28% of total revenues from airport operations and amounted to NOK 2,904 million. The travel value stores have annual revenues of approximately NOK 80 million.

On ARN’s successful bid, Avinor said: “The bidder presented a simple and cost-effective concept, adapting its operations at smaller airports. Stores will be upgraded to feature new elements allowing for local customisation.

“The bidder demonstrated a clear pricing strategy that meets Avinor’s expectations in relation to cost savings for customers. The bidder met Avinor’s expectations in digital terms, including its proposed click and collect solution.”

On TRN’s successful bid, Avinor said: “The bidder had a very good business plan focusing on building digital revenues, clearly specified with ambitious targets. The concept is clear, attractive and flexible, with a holistic strategy that will seek to increase customer share. The concept met all expectations in terms of price savings.

“Highly efficient logistics solution and short delivery times for click and collect orders. Dedicated warehouse for Norwegian e-commerce. Excelled with its emphasis throughout on sustainability and specific environmental initiatives.”