An artist’s impression of how the new Stockholm store might look when it is finished. See larger version below.

Swedish airports authority ‘Swedavia’ has agreed a new seven-year contract concession agreement across eight airports with the Dufry AG-owned Nuance company, which is estimated to be worth around SEK.8 to 10bn ($955m to $1.2bn) for the entire contract period – after Dufry has made ‘major investments to enhance the passenger retail experience’.

This will include a new walk-through shop of more than 2,000sq m as the new ‘flagship’ of Stockholm Arlanda Airport’s new Terminal 5 retail area which is due to be ready in 2021.

DUFRY HAS 16 YEARS EXPERIENCE IN SWEDEN

Dufry is the world’s largest travel retail operator and has run the tax and duty-free shops at Swedavia’s airports since 2001. Revenue from commercial operations is a crucial part of Swedavia’s strategy in order to continue developing operations and increase connectivity to Sweden.

Dufry, which has operated Sweden’s main international airports since 2001 is planning ‘extensive investments’ in all its shops at Swedavia’s airports between 2018-2019. Apart from the major walk-through store, the new marketplace will open in 2021 forming part of Swedavia’s new commercial concept.

(LtoR): Karl Wistrand, EVP Commercial & Real Estate at Swedavia, Eugenio Andrades, Division CEO UK, Central and Eastern Europe at Dufry, Jonas Abrahamsson, CEO at Swedavia, Karl Walter, General Manager Sweden & Finland at Dufry. Dufry – through its Nuance subsidiary – has managed Swedavia’s tax and duty-free stores for the last 16 years, operating 14 stores with a total retail space of 5,950sq m.

This aims to provide passengers with ‘a totally new experience in food & beverages, retail and commercial services’. The retailer adds that the commercial concept is ‘scalable’, therefore allowing for a smaller version to be opened at the same time in Göteborg Landvetter Airport.

Commenting on the new initiative, Karl Wistrand, EVP Commercial & Real Estate at Swedavia said: “With Dufry, we have a very strong partner with a great amount of innovativeness and the economic potential to drive development in the rapidly changing field of retail.

How the new Dufry walk-through store at Stockholm Airport might look once it is completed.

‘IMPRESSIVE’ INVESTMENT PLANS

“The investment plans that Dufry has presented are impressive and we are pleased to note this major investment in the Swedish market. Our commercial business constitutes a crucial element in Swedavia’s SEK.16.5bn investment through 2020 to optimise our airports.”

Eugenio Andrades, Division CEO UK, Central and Eastern Europe at Dufry.

The new retail offer will see Dufry create ‘an innovative product mix’ and ‘a clearer positioning of brands and locally adapted destination zones’ within the stores – including a ‘Discover Sweden’ section.

Additional attention will be focused on the fast growing millennials target group – including through in-store digital solutions – while the retailer’s loyalty programme ‘RED’ will also be rolled out within the Swedish stores.

Commenting on the new contract, Eugenio Andrades, Division CEO UK, Central and Eastern Europe at Dufry said: “We would like to thank our partners at Swedavia for the ongoing trust and belief they have shown in us through the tender process.

An artist’s impression of a section dedicated to local produce aimed at imparting ‘a sense of place’.

MULTIPLE REFURBISHMENTS ACROSS 12 STORES

“We are delighted to be able to continue to work together and our dedicated teams are committed to developing outstanding stores for Swedavia and for our customers.”

Currently, Dufry points to six stores in Arlanda, two in Göteborg Landvetter and one store each in Malmö, Bromma, Luleå, Umeå, Åre Östersund and Visby. All of these will be refurbished over the next two years as part of its ‘ambitious investment plan’.

The beauty areas within Dufry’s larger shops are traditionally big earners for the operator, but they have to be – as they are also very space intensive.

Dufry adds that the main objective of the store refurbishment programme will be to improve the customer experience and enhance passenger flow within the stores. Stronger brand personalization will be introduced, along with a more innovative and exclusive product mix.