Hong Kong International Airport issues eight-store confectionery tender

HONG KONG. Airport Authority Hong Kong (AAHK) has issued its pioneering confectionery tender, with one licence covering eight units. Bids close on 4 July. The Moodie Davitt Report anticipated today’s tender release earlier this week.

AAHK said that the concession represented “a unique business opportunity for confectionery operators in this prestigious hub”.

Prized space: How the eight units break down by location

The business is currently held by DFS Group as part of its Airside General Merchandise concession (scrapped in a revamped structural mix this time around) but is now being offered to the market as a dedicated contract.

The tender is likely to attract widespread interest, including from the winners of the liquor & tobacco and perfume & cosmetics and fashion accessories tenders CDF-Lagardère (either bidding separately or together) and Shilla Travel Retail. Several other international retailers and regional confectionery specialists are expected to examine the opportunity closely.

At stake are airside spaces of between 57sq m and 186sq m. Locations include the T1 East Hall, T1 West Hall, T1 Departures Central Concourse, plus the Midfield Concourse and North Satellite Concourse.

AAHK noted that the airport handled over 100 airlines and 70.5 million passengers in 2016, and cited its “extensive air, sea and land links as well as round-the-clock facilities”.

It added: “HKIA’s affluent mix of passengers come from all over the world, with 41% being executives, professionals and proprietors.”

The sweet spot: Airport Authority Hong Kong hopes that by having a dedicated contract confectionery sales will flourish
HKIA_TABLE_FINAL
Several of the bidders who contested the liquor/tobacco/gourmet and beauty & accessories tenders are expected to front up again

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