SWITZERLAND. In big breaking news, Dufry announced this morning that it has signed an agreement with Zürich Airport to renew its contract there until 2028.
The critical ten-year-agreement at one of Dufry’s key global locations, also foresees a full renovation of the retailer’s activities at the airport, which will be implemented in the next two years.
The new shops will feature the most up-to-date shop layouts in a fresh new look, Dufry pledged, further optimising passenger flows in Departures and Arrivals.
The re-ramped retail space is one of the first locations to receive what Dufry dubbed as its New Generation Store, “an innovative concept that takes travel retail to the next level”, the company claimed.
In the new design, the shop will adapt to the passenger flow, displaying brands and products according to profile. Brands will also have significantly more exposure, with dedicated areas for promotions and other activities.
Airport owner Flughafen Zürich stated: “The new contract… includes an improvement in the key financial parameters for Flughafen Zürich and secures a strategic long-term positioning for Dufry at Zurich Airport.”
Dufry has also partnered with Zürich Airport on its hugely ambitious new development The Circle, where the retailer will develop a range of duty paid activities.
It currently operates 35 shops over 7,000 m2 of retail space at the Swiss gateway, among them multi-category duty free shops, specialised stores and brand boutiques, in both departures and arrivals.
Zürich Airport is the largest airport in Switzerland and one of the largest in Europe. It received over 26 million passengers in 2015.
CEO Julián Díaz said: “I am most pleased with the agreement reached with Zürich Airport. The airport is not only the largest in our home country, Switzerland, but also one of the most important airports in Europe. I am also excited for Zürich to be one of the first locations to receive our ‘New Generation Store’, which will change the way we see travel retail going forward. I would like to thank Zürich Airport for the confidence in Dufry. Our commitment is to create the best shopping experience at the airport, bringing the most exciting shop concepts.”
Flughafen Zürich CEO Stephan Widrig added: “We are glad to continue our long-term and successful partnership with Dufry. By renewing this contract we start a new phase of development for the commercial activities of Zürich Airport. We are proud to be one of the first airports to receive Dufry’s new store concept and happy to partner with Dufry in our journey in The Circle. We look forward to a longstanding and successful relationship with Dufry.”
Comment: Make no mistake, this is a critical agreement for Dufry. In a troubled world, where many of the contracts it gained through the acquisition of The Nuance Group (Russia and Turkey come to mind) have been hit by political and/or economic turmoil, Zürich Airport is a rock of solidarity – despite the challenges posed by the high Swiss Franc.
It is a profitable concession and now a long-term one, key ticks in the boxes that Julián Díaz is so rigorous in constantly assessing.
Additionally, thanks to its commercially astute airport management, Zürich Airport offers an interesting test laboratory for new concepts, notably the much-heralded New Generation Store. Additionally The Circle is one of the airport world’s most ambitious projects and an indicator, perhaps, that the future world of airport commerce will look very different from that of the past. Díaz, as he made clear in his seminal speech at last year’s Trinity Forum (he is speaking again at this year’s event in September) knows that Dufry must combine the best of both. Zürich is a great place to start.
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