London Luton set for +50% duty free store expansion

By Kevin Rozario |

London Luton Airport (LTN) is promising that it will enlarge its current core duty free and travel retail store by almost 50% as it seeks expression of interest for the business – and make it a walk-though design.

 

Speaking to TRBusiness, the airport – now controlled by Spanish airports operator Aena, and the infrastructure fund of private investment company Ardian – said that it would enlarge the present store from 886sq m to around 1,300sq m, a 46.7% increase.

 

LTN said: “The new unit will be a walk-through store which will be positioned at the start of the airside shopping experience with around 1,300sq m of retail space allocated. We also plan to have a second store at the end of the terminal experience with a walk-through arrivals store.”

 

The present unit is operated by Aelia (part of Paris-based LS Travel Retail) whose 10-year contract ends in 2015 after which time the winner of the current tender will begin operations from October for another 10 years.

 

SALES UP +9.4% in H1

Earlier today, LS Travel Retail announced that its first half sales at LTN had grown substantially by +9.4% “thanks to commercial initiatives, the openings of a MAC pop-up store and an arrival store”. This helped its overall UK business grow by +4.2%.

 

The improved retail offer is part of a £100m ($169m) redevelopment programme for which the launch of the procurement process has begun. Clive Condie (left), Executive Chairman of London Luton Airport, says: “Our vision is for a vastly improved airport which plays a major role in providing more capacity in the London system.”

 

The construction work will take place over three phases to create a larger, modernised terminal building (right) to accommodate and equip:

– up to 20 security passenger screening lanes

– 15 immigration passenger screening lanes

– up to eight international and one domestic passenger reclaim belts

– increased retail, catering, circulation and seating areas

– a new two-storey pier.

 

In March this year, LTN signed a new 10-year deal with easyJet, the UK’s largest airline, which will more than double the number of easyJet passengers using the airport to over 9m a year.

 

LTN says that this year it expects to see a record number of passengers go through its terminal, with numbers expected to outstrip the previous high of 10.3m set in 2008.

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