Heinemann talks up JV contract to run duty free shops at Jeddah’s KAIA

By Luke Barras-hill |

Heinemann has signed a deal to run the duty free concession at King Abdulaziz Airport in Jeddah, Saudi Arabia, alongside partners.

Heinemann and its partners have struck an agreement with JEDCO to run the duty free concession at KAIA. Source: JEDCO.

Gebr. Heinemann has pledged ‘to build a new and unique shopping experience’ at Saudi Arabia’s King Abdulaziz International Airport (KAIA) in Jeddah after inking an agreement for the duty free contract alongside partners Jordanian Duty Free Shops and Astra.

As TRBusiness reported in October, the Hamburg-headquartered travel retailer was named as preferred bidder for the concession after operator Jeddah Airports Company (JEDCO) launched a request for proposal earlier this year.

The joint venture will run approximately 11,500sq m of beauty, confectionery, food, tobacco, souvenirs, fashion, accessories and jewellery space across Terminal 1 and the North Terminal under seven- and five-year (plus a possible two-year extension) lease agreements, respectively.

Passenger numbers set to surge

In a LinkedIn post (see bel0w), Heinemann points to its ‘strong and convincing offer’ to JEDCO KSA delivered through a Heinemann subsidiary and partners within the JV, the incorporation of which is pending regulatory approval.

“Speaking in the name of Heinemann and our partners it is a great pleasure and honour to bring the Saudi Arabian Vision 2030 to life with Astra Group and Jordanian Duty Free Shops,” Florian Seidel, Chief Sales Officer, Gebr. Heinemann said in the post.

In reaction to the post, Paul Neeson, Vice President Commercial, JEDCO offered his congratulations, adding: “A hard fought (sic) tender with a worthy winner and an excellent team… to many successful years ahead.”

Max Heinemann, Co-CEO, Gebr. Heinemann added: “Very excited and committed for the journey ahead. A high degree of collaboration built around the traveller, a constant push in innovating the journey and a vision that creates change. Thank you Jedco KSA for the trust. Looking forward to whats (sic) coming Astra Group & Jordanian Duty Free Shops.”

KAIA handled a record 37 million passengers in 2019. After hitting 31m last year, volumes are expected to surge to circa 50 million in 2023.

The airport boasts four terminals – the new Terminal 1, North Terminal, South Terminal and Hajj Terminal – and three runways over an area of 88 square kilometres.

According to JEDCO, the North Terminal and new T1 handled a combined 14.7m passengers last year and this is predicted to rise to 18.9m this year.

Above LinkedIn post credit: Gebr. Heinemann


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