Spain tender: Bids for four lots exceed MAGs; Lagardère & Dufry in the mix

By Luke Barras-hill |

Financial bids received for four lots in the high-profile Spanish airports duty free shops contest are a combined 17% higher* than the rents defined by operator Aena, it emerged yesterday (11 May).

Dufry Group and Lagardère Travel Retail have between them submitted offers for business packages spanning Andalusia-Mediterranean, Canary Islands, Balearic Islands and North Spain, which in total account for 56% of the total guaranteed minimum income of the tender.

In a statement, Aena says the latest offers ‘demonstrate the attractiveness of the business’ linked to its ability to generate value combined with the consolidating air traffic recovery post-pandemic.

‘Excellent technical proposals’

They also reflect ‘the excellent technical proposals’ that will play through in initiatives at the airports, continues Aena.

The Andalusia-Mediterranean lot attracted two offers from Dufry and Lagardère, with the former’s proposal 30% higher than the minimum income set by Aena.

In the Canary Islands, Dufry subsidiary Canariensis offered 5% above the minimum guarantee, while Dufry’s bid for the Balearic Islands lot came in a 20% higher.

Meanwhile, Lagardère submitted a financial offer for Aena’s airports in the north of the country that improves on existing guarantees by +4%.

Tenerife Duty Free fascia from World Duty Free. Source: Aena.

As reported, 13 operators from 10 companies had demonstrated initial interest in the tender, the results of which are due in July.

Last week it emerged that no bids were received for lot 1: Madrid Airport and lot 4: Cataluña Airports (Barcelona-El Prat, Girona-Costa Brava and Reus Airports) in the much-vaunted tender covering 12-year contracts across 27 airports in the country.

The remaining lots all attracted bids, confirmed a statement from Aena seen by TRBusiness, with a new bidding due to be proposed by the Aena Board of Directors.

As part of the process, a clause in the current lease agreements could be triggered requiring the existing tenant to continue running the shops operations for a maximum period of six months from the date of completion of the new contracts until a fresh award is made.

Aena confirms it is studying the next steps ‘with a view to presenting its strategy to the Board of Directors in the near future’.

Dufry’s current contract expires on 31 October with the new concessions set to begin in November.

The global travel retailer has proposed renovations at all of its existing stores to prioritise the passenger experience, the statement continued.

Barcelona-El Prat was one of several airports falling within two lots that failed to attract bids in the first round of bidding. Source: Aena.

Space design will be shaped by the history, culture and traditions of the city in which the airport is located, with smart stores blending physical and digital engagement favoured.

Lagardère’s plans for North Spain include heightening the quality of the end-to-end customer journey, bringing in new and trend-setting brands and environments that connects the passenger with the digital tools and techniques.

According to Aena’s Q1 results published last month, commercial revenue supported by a growth in sales from commercial activities surpassing 2019 levels, reached €337.9 million (+40% year on year).

*Calculated in terms of updated RMGAs (minimum guaranteed rents) for the 12-year period and improve the 2023 rents by 28% (current RMGA 2023 versus that offered for 2024.

For background on this story, see links below.

Spain duty free tender: Operators given 12 weeks in crucial bidding window

Europe, Asia and Americas retailers eye duty free tender at Spain’s airports

Aena launches ‘world’s largest duty free shop tender by turnover’

Spain tender: More details emerge on coveted airport duty free contracts

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