Lotte Duty Free weighs up Taiwan Taoyuan Airport Terminal 2 duty free tender

TAIWAN. Lotte Duty Free is “thoroughly reviewing the feasibility” of bidding for the upcoming Taiwan Taoyuan International Airport Terminal 2 duty free tenders.

A spokesperson told The Moodie Davitt Report the company had established a local office to prepare for the bidding, which is predicted to take place soon after the Chinese New Year (16 February) celebrations.

Lotte Duty Free’s flagship store in Myeong-dong, Seoul, maintained its position as the number one business in the South Korean duty free market in 2017. It posted sales of just under US$2.8 billion.

As reported, the contracts will run for 12 years with three-year extensions subject to “outstanding” performance. Contracts are expected to be signed with the victors within three to four months of the tender announcement.

The incumbents for the T2 zones C and D concessions are Tasa Meng Corporation (North Gate D) and Everrich Duty Free (South Gate C).

As well as the long-established duo and Lotte Duty Free, parties understood to have expressed interest include Dufry, DFS Group, The Shilla Duty Free and Shinsegae Duty Free.

Click to enlarge
Two major long-term opportunities at one of Asia’s blue-chip travel retail locations are on offer

Tasa Meng and Everrich have both established powerful, well-regarded businesses in recent years, underpinned by a strong commitment to Corporate Social Responsibility, Taiwanese identity and airport public services.

The T2 south side business covers 25,400sq m of space, embracing the departures corridor and the C zone concourse. The T2 north side includes the departures corridor, and D zone concourse, involving around 31,900sq m.

Duty free products that can be sold include tobacco, alcohol, perfumes & leathergoods, watches, fashion & accessories, and other general merchandise.

However, the contract model differs markedly from other Asian airports. It is described as a renovation, operation, and transfer (ROT) project, and involves operating a combination of commercial and public services.

Besides the traditional duty free operations, the winning concessionaire/s will sell or operate:

  • Multicultural and ‘creativity’ merchandise and museum shops
  • Food & beverage
The traffic figures here are published by exclusive agreement with m1ndset’s Business 1ntelligence Service (B1S). This unique air traffic forecasting tool was developed with IATA and ARC’s ‘Direct Data Service’ (DDS) database. Click to enlarge chart.

In keeping with Taoyuan Airport Corporation’s strong Corporate Social Responsibility ethic, the winners must provide job opportunities for the disabled.

They must also operate certain airport public services:

* Passenger inquiries

* IC product information

* Interactive family playgrounds

* Nursing rooms

* Outdoor smoking areas

* ‘Barrier-free facilities planning’

* Shopping trolleys

* Cultural galleries

* Thematic boarding lounges

NOTE TO AIRPORT OPERATORS: The Moodie Davitt Report is the industry’s most popular channel for launching commercial proposals and for publishing the results. If you wish to promote an Expression of Interest, Request for Proposals or full tender process for any sector of airport revenues, simply e-mail Martin Moodie at Martin@MoodieDavittReport.com.

We have a variety of options that will ensure you reach the widest, most high-quality concessionaire/retailer/operator base in the industry – globally and immediately.

The Moodie Davitt Report is the only international business intelligence service and industry media to cover all airport consumer services, revenue generating and otherwise. We embrace all airport non-aeronautical revenues, including property, passenger lounges, car parking, hotels, hospital and other medical facilities, the Internet, advertising and related revenue streams.

Please send relevant material, including images, to Martin Moodie at Martin@MoodieDavittReport.com for instant, quality global coverage.

All such stories are consolidated in our popular Tender News section (see home page dropdown menu) that has been running since 2003.

Food & Beverage The Magazine eZine