BREAKING NEWS: Sharm el-Sheikh tender results

By Charlotte Turner |

According to a source close to TRBusiness, Heinemann has succeeded in winning a duty free tender for Sharm El Sheikh’s Terminal 2. There were seven bidders involved in what was deemed “a well-fought race”.


Dufry, EgyptAir and Flemingo International made it to the final stages with Heinemann. The first three bidders to exit the tender process were Cairo Duty Free, Aer Rianta and Nuance. The incumbent Dufry walked out at USD$8.5m followed by Egyptair at over $9m and finally Flemingo International pulled out at $9.2m.


The aforementioned bid amounts related to MAG (Minimum Annual Guaranteed Revenue) after equalising the revenue share to 37.5% for all bidders.


Gunnar and Claus Heinemann.


Back in October last year, Aer Rianta International CEO Jack MacGowan said the retailer was particularly interested in the Egyptian business and would remain focused on making its offers as clear and as attractive to the airport authorities there as possible.



At the time, he said: “We were in Egypt in a partnership with EgyptAir for seven years. We had a team of four or five people in there as late as the year before last. We understand the market very well and we are actively engaged in the bids and the new business development there.”


Heinemann also recently revealed that it had opened a sales office in Abu Dhabi with the purpose to develop its business in the Middle East region, while also looking to tender for the new Abu Dhabi International Airport MIdfield Terminal contract.


In February Heinemann also confirmed to TRBusiness that it would be participating in the tender for duty free business in three Egyptian locations, including Sharm El Sheikh, Hurghada and Cairo.


Tender results of Sharm El Sheikh Airport’s larger Terminal (T1), were originally planned for tomorrow, but may now be postponed until May. Results of the Hurghada duty free tender are expected later this week. The incumbent operator at Hurghada is EgyptAir Duty Free Shops.


Terminal 1 Departure Hall Sharm el-Sheikh Airport.



During the MEADFA conference at the end of last year, Sherif Toulan Director International Duty free Trading and Agencies IDFS, said that since July to October Egypt saw a drop of around 50% in passenger traffic mainly from Russians, Germans, English and the Italians.


In November he said: “Everything isn’t rosy, but stability is returning.” He said that if sales at the airport were down by 20-25% in 2013, it would still be a positive result.


“Most of the international retailers recognise the importance of Egypt long-term. Most international operators were involved in the three tenders last month [for Sharm El Sheikh International Airport]. Some of them might be cautious but mid to long term, they know it’s the place to be.


“I wouldn’t say it’s rosy, but you should be there because in the near future it’s going to pick up and it’s not very far away.”

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