Nine-store travel essentials tender to release at Prague

By Luke Barras-hill |

Prague Airport facadePrague Václav Havel Airport (PRG) is set to issue a travel essentials tender covering Terminal’s 1 and 2, TRBusiness can reveal.

The tender concerns nine units spanning 612sq m (net) located across the airside and landside areas currently held by Lagardère Travel Retail under its Relay news and convenience fascia. The travel retailer’s contract is set to expire in December.

Bid documents and further information are set to be released in due course, with the lease term covering approximately five years, it is understood. The chosen partner will begin operations on 1 January 2020.

SECOND TENDER

The new tender is the latest in an evolving concessions refresh at PRG, which served a record-breaking 16m pax in 2018.

Earlier this month, the airport issued a 10-year duty free tender (seven years with a three-year extension option) covering 4,270sq m across both terminals, including a new walkthrough store at Terminal 1. The duty free contract held by Lagardère Travel Retail also expires in December.

Submissions are due by 8 May, with the airport expected to announce the winner in June ahead of a January 2020 start to business.

PRG_Ritualsfashion

Lagardère Travel Retail has marked the official opening of three multi-brand fashion and accessories outlets (Fashion Place) and a Rituals shop.

PRG is seeking ‘one of the best worldwide partners’ to develop duty free services and increase customer satisfaction, with a share of the contract dedicated exclusively to the provision of core category products, the operator had earlier stated.

“This is one piece of our strategy aiming at reconfiguring – from a business perspective – the whole airport,” Jiří Petržilka, Executive Director, Non-aviation business, Prague Airport told TRBusiness.

“We are offering different kinds of tenders – some announced and some due to release soon. With the duty free tender we think it will lead to an upgrade of our commercial offer beginning 1 January 2020.”

The tenders feed into PRG’s long-term commercial strategy as it gears towards a preliminary opening of its newly reconfigured terminal building in 2027 that will completely re-map the passenger journey [see below video]. As previously noted, the airport is investing CZK 27bn ($1.1bn) in projects such as an extension to Terminal 2 and the construction of a new parallel runway.

Currently, Terminal’s 1 and 2 serve non-Schenghen and Schengen traffic, respectively, meaning a separation in passenger flows.

“The configuration for the future terminal will mean all passengers will enter the airport at Terminal 2 and are distributed through central security control to Schengen and non-Schengen flights,” comments Petržilka. “That will enable us to optimise the commercial space, which is one of our ultimate goals. This is a strategic vision we are heading to.”

Separately, plans for the Prague Airport Lab #PRGAirportLab project concentrating on digital technologies and a data-driven approach to the passenger experience are ongoing.

PRGAirportLab is undertaking the project to consider potential applications and disruptive technologies, some of which may be prototyped, to build on its ‘innovation roadmap’.

The work is crystallised through a dedicated innovation centre, independent from the airport’s other departments, to encourage collaboration and experimentation.

In the case of retail, this is playing out through research on virtual shopping, e-commerce and other analytical iterations. TRBusiness will be tracking these developments with interest in the coming months.

Jiri_Petrzilka

Jiří Petržilka, Executive Director, Non-aviation business, Prague Airport.

SHOP OPENINGS AT TERMINAL 2

On a timely note, PRG today (23 January) unveiled its uprated commercial zone at Terminal 2.

As reported, Lagardère Travel Retail opened a Rituals cosmetics shop and three multi-brand fashion and accessories concessions operating under it trademark The Fashion Place concept at the post-security area in December.

The three stores (two multi-brand fashion and one multi-brand accessories) merchandise premium and mid-price brands from the likes of Michael Kors, Tous, Swarovski, APM Monaco, Guess, Fossil, Tissot, Calvin Klein, Diesel, Swatch, Certina, Flik Flak, Skagen, Daniel Wellington, Marc Jacobs, Armani, Rayban, Prada, Oakley, Burberry, Versace, Miu Miu, Ralph Lauren, Gucci, Superdry, Tommy Hilfiger, Lacoste, Hugo Boss, Longchamp, Furla, Tumi, Samsonite, Kipling, Victorinox and others.

“Generally, Lagardère does business really well here at PRG – I think this performance is something that would be hard to overcome if run by a local operator,” observes Petržilka.

“I would say the rising star is really Rituals – it seems that was exactly what was missing. Even Lagardère has been surprised by the sales it achieved in the shop.

“January sales are a bit lower as it is after the Christmas period, however, they are better than expected, so this is promising.”

Coccinelle and Hamleys – both locally-operated – have also begun trading [the latter opened today – Ed] in addition to self-service restaurant Marché Mövenpick, which provides a range of F&B options.

Asked why Hamleys represents a good fit for PRG, Petržilka continued: “Hamleys is simply a good concept and something a bit different compared to standard toy shops. This, I believe, will make a difference.”

Last year, PRG introduced two smaller Marché Mövenpick eateries in Terminal 1, but the latest iteration in Terminal 2 is reportedly the first airport to offer a large outlet in Eastern Europe and its new positioning will benefit from almost 100% of the pax flows in Terminal 2.

“We believe this installation will really help us to increase the value and level of F&B services offered at Prague Airport,” added Petržilka. “The feedback from customers has been so great we are sure our choice was the best one in this case.”

Alternative_PRG

A 10-year duty free tender covering 4,270sq m across both terminals opened earlier this month.

The operator this morning hosted a press conference outlining plans for PRG’s non-aviation development, with speeches from Václav Řehoř, Chairman of the Board of Directors, and representatives from Lagardére Travel Retail, Rituals, Marché, Hamleys and Coccinelle.

This was followed by a guided tour of the commercial area.

Updates to follow…

 

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