SOUTH KOREA. The main fashion and miscellaneous goods concession at Incheon International Airport has been retendered today, following an absence of any bidders first time around.
An Incheon International Airport Corporation executive confirmed the development to The Moodie Davitt Report. The DF3 package offers 4,889sq ft of retail space.
The lack of interest is likely to be linked to profitability concerns in the face of stern minimum monthly guarantees while Chinese visitor numbers are plummeting due to the THAAD dispute between South Korea and China.
As reported, four retailers have tabled bids for Incheon International Airport’s T2 perfume & cosmetics (DF1 in table below) and liquor/tobacco/foods concessions (DF2) reserved for major companies. Incheon International Airport Corporation confirmed that they are Lotte Duty Free, The Shilla Duty Free, Shinsegae Duty Free and Hanwha Galleria Duty Free. Bids closed earlier this week.
As reported, the long-awaited T2 tender is being conducted on an unprecedented two-stage basis, following a major dispute between the IIAC and KCS over how bids should be judged.
That row was resolved in early February with an agreement between the two parties to hold a two-tier assessment. This involves IIAC first judging bids on all six licences (three for big players, three for small & medium enterprises) based on a 60% technical and 40% financial weighting.
IIAC is to recommend two players for each licence with KCS deciding the outright winners based on its own scoring system, including contribution to small & medium enterprises. While KCS will make the final awards, IIAC’s evaluation is likely to prove key.
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