Denver International Airport (DIA) and Dufry have opened two new duty free and tax free stores in Concourses A and B, plus standalone duty paid Kiehl’s and Urban Decay outlets in Concourse C.

 

Management at DIA says that all four stores are forecast to generate a ‘combined’ $7.6m in annual gross revenues, while creating 37 new full and part-time jobs.

 

The Denver Duty Free stores feature a 2,315sq ft outlet located in the central area of the A Concourse, plus a 2,328sq ft shop on the B Concourse mezzanine level.

 

Meanwhile, Concourse C is home to the Kiehl’s and Urban Decay outlets, which DIA says ‘are initially duty-paid specialty retail stores, but could become a third duty-free/duty-paid location later on.’ [These two stores actually opened in January of this year-Ed].

 

 

Bhavesh Patel, DIA’s Chief Revenue Officer said that Denver is now a growing hub for international travel, with about 2.2m international passengers in 2015.

 

“We specifically set out to reimagine the duty free experience in Denver, to help elevate the travel experience for our international passengers who are increasingly seeking this type of retail opportunity.

 

“We are excited that Dufry is bringing its international portfolio of experience to the Mile High City.”

 

 

The Denver Duty Free business is being operated by a joint venture, which comprises Dufry North America, Hudson Group, Odd Tale Books and Wystone’s World Teas Holdings.

 

Odd Tale Books and Wystone’s World Teas Holdings are both members of FAA Concessions Disadvantaged Business Enterprise programme, which ensures fair competition for women-and minority-owned businesses in airport concessions.  [This is also an FAA condition for US airports to qualify for Federal funding-Ed].

 

Commenting, JosephDiDomizio, Hudson Group President and CEO said: “As a partner with DEN since 2003, we are pleased to now offer all passengers a wide range of luxury brands such as Estée Lauder, Michael Kors, Dior and Chanel.

 

 

“We will also feature local Denver favourites, such as Stranahan’s Colorado Whiskey and Hammond’s Chocolates.”

 

DIA management adds that the new stores greatly expand the amount of square footage dedicated to duty free shopping on all three concourses, from 1,056sq ft to around 6,000sq ft. It will be interesting to monitor the annual revenue levels over the next few years to see how this extra space makes a difference.

 

[The previous duty free contract holder was a joint venture between Nuance – now owned by Dufry – and DFASS, trading as Liberty Tax & Duty Free Shops-Ed].

 

 

Denver Airport’s retail and F&B concession programme now comprises over 170,000sq ft of retail space and 140 locations and in the last calendar year it generated around $336m in annual gross sales.

 

As reported at the time, the opening of these stores was delayed following an earlier appeal procedure by DIA Retail Fashion/DFASS. The original contract was awarded in September 2014, with the opening scheduled for June last year.

 

At that time it was forecast that this contract would generate around $53m in total sales turnover over the full seven-year term.

 

For more background information on this, click here: http://www.trbusiness.com/regional-news/the-americas/denver-airport-waits-for-duty-free-appeal-process/75483

 

 

Denver International Airport handled a total of 2,192,613 international passengers in calendar year 2015 which was slightly down (-0.7%/15,596 pax) on 2014.

 

Total traffic at DIA was dominated by domestic services, which together with international came in at an all-time record 54m in 2015 – up 1% on the previous year.