Swedavia signs new seven-year tax-free agreement with Dufry
Swedavia has signed a new concession agreement with Dufry AG, which will operate and develop the airport group’s tax- and duty-free shops for seven years.
The value of sales in the shops is estimated SEK 8-10 billion during the contract period, and Dufry will make major investments to enhance the passenger retail experience at Swedavia’s airports. The largest investment is the planned walk-through shop covering more than 2,000 square metres, which will be the flagship of the new retail area to be completed in 2021 in Terminal 5 at Stockholm Arlanda Airport.
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 will make extensive investments in all its shops at Swedavia’s airports in 2018-2019. The biggest investment will be the walk-through shop covering more than 2,000 square metres in a new retail area in Terminal 5 at Stockholm Arlanda. The new marketplace will be completed in 2021 and is part of Swedavia’s new commercial concept, which will provide passengers with a totally new experience in food & beverages, retail and commercial services. The commercial concept is scalable and will also be launched at Göteborg Landvetter Airport.
“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. 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 16.5 billion investment through 2020 to optimise our airports,” said Karl Wistrand, EvP Commercial & Real Estate at Swedavia.
Dufry’s offering will consist of an innovative product mix, a clearer positioning of brands and locally adapted “destination zones” in the shops. There will be a particular focus on products for the fastest growing target group, millennials, including through in-store digital solutions. Dufry’s loyalty programme RED™ will also be made available in the Swedish airport stores, to deliver better value and unique promotional benefits to all customers.
“We would like to thank our partners at Swedavia for the ongoing trust and belief they have shown in us through the tender process. 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”, said Eugenio Andrades, Division CEO UK, Central and Eastern Europe at Dufry.
The seven-year concession agreement was signed between Swedavia and The Nuance Group (Sverige) AB, which is part of Dufry AG.