USA. The Houston Airport System (HAS) is seeking potential partners to bid for a non-exclusive duty free retail concession at Houston George Bush Intercontinental Airport. The bid deadline is 29 January, with an intended contract start date of 1 April.
The bid follows ATÜ Americas announcement that it would exit its ten-year duty free concession contract early next year. As reported in October, the ATÜ Duty Free subsidiary has entered into a Compromise, Settlement, and Release Agreement with HAS and the City of Houston. The parties had been in dispute over contract issues but the agreement offers a full resolution.
The airport company has now issued a Request for Proposals (RFP) process for a new duty free partner in terminals A, B and D.
Crucially, according to the bid documents, the winning bidder must pay ATÜ Americas US$2.5 million “for the unamortized value of the investment made in the premises covered by this RFP”.
ATÜ Americas’ gross sales hit US$10.5 million in fiscal year 2018, with around US$10 million from duty free and the balance from speciality stores. Total airport duty free sales in FY18 were around US$23 million; Dufry is the other major duty free retailer at Houston.
The RFP stipulates that a minority Airport Concession Disadvantaged Business Enterprise must control 25% of the winning venture. HAS said that the chosen concessionaire will pay to the City a sum equal to the greater of the Minimum Annual Guarantee (MAG) or a Percentage Fee (of gross revenues).
Bids will be evaluated using a 100-point scale, with key criteria as follows: Customer service/Management & Operation plans (30 points); Sense of Place/Variety of Merchandise (25 points); Background & Experience (25 points); Transition plan (10 points); Compensation to City (separate envelope, 10 points).
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