SINGAPORE. Changi Airport Group has paid tribute to long-standing concessionaire DFS Group after the retailer opted not to rebid for the liquor & tobacco concession at Changi Airport.
As exclusively revealed by The Moodie Davitt Report, Lotte Duty Free, The Shilla Duty Free and Gebr Heinemann have all bid for the liquor and tobacco concession, which generated an estimated S$590 million (US$430 million) in sales last year.
However, DFS Group, which has held the concession at Changi Airport since 1980, has declined to bid for the six-year contract, citing changing regulations concerning the sale of liquor and tobacco in Singapore and wider geopolitical uncertainty.
Changi Airport Group Senior Vice President for Airside Concessions Teo Chew Hoon commented: “Changi Airport Group’s tender for its duty free liquor & tobacco concession, which was launched on 4 June 2019, has closed on 26 August 2019. Changi Airport Group has received several submissions and will begin the process of evaluating proposals. We expect to award the tender by the end of 2019.
“The tenancy terms will cover 18 stores, spanning over 8,000sq m of retail space across Changi Airport’s four terminals, for a period of six years from 9 June 2020 to 8 June 2026.
“DFS Group is a valued partner whom we have worked with at Changi Airport for the past 38 years. We are disappointed that they have opted not to participate in this tender but we will work closely with them to ensure a smooth transition to the new operator for the liquor & tobacco concession. We will also continue to work closely with them to grow their other concession businesses in Changi Airport.”
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