Aéroports de la Cote d’Azur, which operates Nice Airport, is planning a total overhaul of the retail operations at France’s third busiest gateway in the next three years – with the doubling of its shopping space at both terminal one (far left in main picture) and terminal two.

 

A core element of the new offer will be the airport’s first ever walk-though stores for the main travel retail offer for core categories such as perfumes and cosmetics, wines and spirits, and tobacco. It is hoped that the total revamp will increase revenues to Aéroports de la Cote d’Azur by +50%.

 

TRBusiness understands that the plan, which is still not completely finalised, will also entail a major tender process for the new retail facilities. Current key contracts – such as those with Aelia (for the main tax free shops) and Dufry (for a number of boutiques and food outlets) – run until January 2016.

 

Chief Commercial Officer, Filip Soete (left), tells TRBusiness: “We will tender by the end of 2014 but we have yet to decide how we will divide the offer.” He explained that there may be some boutiques whose contracts the company would negotiate with brands directly, while some would be run by a single concessionaire.

 

Valerie Chuong (below right), Head of Department – Development of Commercial Activities & Services, adds: “We are interested in developing an offer that reflects our location on the Cote d’Azur and we still need to define the brands that will make up the local offer.”

 

Another aspect that will affect the brand choices is the growing number of Russian and Chinese passengers that are travelling to Nice to get to the wider Cote d’Azur. While spending from French passengers is around €2/pax, it soars to approximately €100/pax for the Chinese, and €130/pax for Russians.

 

T1, which handles about 4.5m passengers today, is going to increase its retail space from 4,700sq m to 9,000sq m while in T2, which processes about 7m passengers, the exact increase is still under discussion. However, the latter will also involve the physical construction of adjoining space (on two levels) to the current main rotunda area (below), and an additional extension which will include extra gates.

 

 

One of the key ways that T1, in particular, will gain more store space is by reducing the landside areas and enlarging the airside, a move that duty free and travel retailers will be keen on as this is where they can generate higher per passenger spending. The T1 offer is planned to open in 2016 while T2 is expected to be finished by May 2017.

 

[Full details of this major retail project – and the strategy underpinning it – will appear in the TFWA Cannes edition of TRBusiness magazine, out soon.]