Fast-growing CNSC builds on Nanjing success by securing Nanchang and Quanzhou airport duty free contracts

CHINA. China National Service Corporation (CNSC) has been awarded three departures duty free contracts at leading Chinese airports – Nanchang Changbei International, Quanzhou Jinjiang International and Nanjing Lukou International (where, as reported earlier this month, CNSC was named highest bidder).

The retailer has also secured three land port departure store contracts, at Longzhou Shuikou port (on the border with Vietnam), Pingxiang Friendship Pass (one of the most famous passes in China and a key point of political, economical and cultural communication between Vietnam and China), and Jian port, respectively.

The contract gains accelerate CNSC’s impressive recent momentum. As reported, the Sinopharm-controlled retailer is also preparing to inaugurate its first duty free store in Hainan in December. In September, CNSC also celebrated the Grand Opening of a new-look downtown duty free store in Hangzhou, the capital of China’s Zhejiang province.

The Nanchang Changbei concession features a 178.9sq m duty free store in T1’s International Departure Hall. The five-year contract is effective from the date of contract signing.

Nanchang Changbei Airport, 28k away from the center of the historic city of Nanchang, is Jiangxi Province’s sole international gateway.

Nanchang Changbei Airport served 900,000 international passengers in 2019, a traffic volume that is expected to soar in coming years

CNSC is simultaneously developing a downtown duty free store store in the city. The joint ‘port + downtown’ operational model will be an important addition to the retail offer in the city.

The Nanchang Changbei International Airport Terminal 1 Departure Hall duty free shop area is marked in red

The Quanzhou Jinjiang International Airport concession features a 200sq m duty free store in  theInternational Departure Hall. The eight-year contract is effective from the date of contract signing.

Quanzhou Jinjiang International Airport is located in Quanzhou, Fujian Province, in the southeast coastal area of China. In 2019, the airport served 960,000 international passengers though annual passenger throughput is expected to reach 20 million by 2030.

Because of Quanzhou’s importance in terms of geographical location and the economic development of Fujian Province, winning the airport duty free contract is a key step in CNSC’s strategic development, the retailer said.

Quanzhou is the economic hub of Fujian Province, and the starting point of the Maritime Silk Road, a UNESCO-recognised integral component of China’s Belt and Road Initiative to connect China with the rest of Asia, Africa and Europe.

The contract represents an expansion of CNSC’s duty free footprint into China’s key southeast coastal areas.

Nanjing Lukou Airport, 35.8 kilometres away from the centre of Nanjing, is the gateway between Jiangsu Province and Nanjing City. The airport is a large-scale national and regional hub, China’s air cargo centre and express delivery centre.

As reported, the Nanjing Lukou Airport concession covers a 1,500sq m duty free store in T2’s International Departure Hall. The guaranteed annual rent is CNY55.35 million (US$8.37 million) or a 28.44% monthly commission on sales, whichever is highest. The eight-year contract becomes effective from the date of contract signing.

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