Prague Airport reveals upgraded T2 commercial zone as ambitious expansion plans take shape

CZECH REPUBLIC. Prague Václav Havel Airport inaugurated a new 2,200sq m commercial zone in Terminal 2 with key partners on Wednesday, part of a long-term €1 billion transformation of the Czech gateway. The Moodie Davitt Report attended the opening event – watch out for an interview with Prague Airport CEO and Chairman of the Board of Directors Václav Rehor, coming soon.

Six stores and one restaurant have opened as part of this redevelopment in T2, dedicated to Schengen traffic (T1 handles non-Schengen flights). The outlets will be complemented by the opening of a children’s corner soon.

Partnerships in Prague: Officially opening the new zone on Wednesday were (from left): Marché International Chief Commercial Officer Hermann Ircher, Hamleys Director of Operations Daniel Chytil, Rituals Travel Retail Director Neil Ebbutt, Prague Airport CEO Václav Rehor, Lagardère Travel Retail COO Czech Republic Richard Procházka and Tom Plus Owner Tomás Krizek.

As reported, Lagardère Travel Retail has opened three new stores under The Fashion Place brand in 290sq m of space, as well as a 51sq m outlet with lifestyle beauty brand Rituals. Other additions include the first Hamleys store in the Czech Republic and a Coccinelle store managed by local company Tom Plus.

In dining, Mövenpick brand Marché makes its country debut, one of three new outlets won in a recent tender by the Swiss food company (see below).

The Fashion Place: Three Lagardère Travel Retail stores representing fashion & accessories sub-categories are at the heart of the new zone in T2.

The upgraded T2 airside commercial zone also houses the core category Aelia Duty Free shop (Lagardère Travel Retail runs duty free, travel essentials, many of the F&B units through its food service arm and some fashion & accessories stores at the airport), while the area also features more fashion, travel essentials and destination merchandise shops and a diverse dining offer.

The T2 airside expansion was made possible by a reconfiguration of airport security, part of the biggest upgrade of this environment since the terminal opened in 2006. The investment in the construction and expansion, which began last July, was around CZK65 million (US$2.9 million).

Prague Airport CEO Václav Rehor: “A wider selection and increased comfort” in the shopping and dining areas in T2. Below, Rehor and Non-Aviation Business Executive Director Jiří Petržilka (right) speak to Dermot Davitt (full interview coming soon).

“The new commercial zone at Terminal 2 is in accordance with our long-term non-aviation business strategy,” said airport CEO Václav Rehor. “It also enables Prague Airport to meet the demand of increasing number of passengers, expand the offer with a new and exciting range of assortment and services, provide customers a wider selection and increased comfort while shopping and dining.”

He told guests: “We wanted to expand the commercial offer and last year’s change to our security control made it possible. The new offer has been tailored for the passenger profile here with our existing and new partners. Together with our team, led by Non-Aviation Business Executive Director Jiří Petržilka, they delivered on time and with high quality. The stores look great and I’m sure they will be a great commercial success.”

He added: “We are proud to be the first location in the country for the Marché concept. It will surprise passengers; we need to customise the offer for our local travellers and present something unique for visitors. Hamleys and Rituals add to this, as does the enhanced Lagardère Travel Retail fashion range. We want to be a front runner, whether that is in the digital space or in our commercial planning and execution.”

Lagardère Travel Retail COO Czech Republic Richard Procházka: “We have drawn on our experience in other countries and other airports to create this offer.”

Lagardère Travel Retail COO Czech Republic Richard Procházka said: “We are proud to be part of this beautiful new zone, having won the tender for these spaces. We have drawn on our experience in other countries and other airports to create this offer and to open The Fashion Place in three spaces as well as Rituals here.”

Lagardère Travel Retail General Manager Duty Free Jana Volícková added later: “We have split the three stores into three coherent sub-categories: ready-to-wear, accessories and luggage and other fashion accessories such as jewellery, watches and sunglasses. The choice of brands was developed to appeal to the Schengen passenger. It was important to have a multi-brand approach in each; we can be flexible and offer something new every time. Each store has spaces dedicated to promotions and animations, creating stop points for the traveller.”

Fashion brands available at The Fashion Place stores include Hugo Boss, Polo Ralph Lauren, Lacoste, Tommy Hilfiger and Superdry. The leathergoods and luggage offer features Furla, Longchamp, Michael Kors, Tumi, Samsonite, Herschel and Eastpack. An extensive watches, sunglasses, jewellery and accessories range includes Swatch, Tissot, Certina, Swarovski, Tous, Calvin Klein and Ray-Ban.

Procházka added: “Rituals represented an opportunity to broaden the beauty and lifestyle offer, it is a ‘love brand’ that brings something different, including a gifting element, which is important in this environment.”

Rituals Travel Retail Director Neil Ebbutt hailed the opening of the company’s first stand-alone store at the airport. “We would like Rituals to add value to the offer here. We are a lifestyle and beauty brand that is all about affordable luxury. We aim to make ordinary moments special for people, aided by our service and the experience in the store.

“It is our strategy to open more stand-alone stores where possible. It allows the travellers to live and breathe the concept. Prague Airport was one such opportunity to add our travel format with Lagardère Travel Retail. We look forward to new business opportunities here.”

Neil Ebbutt: The Rituals debut at Prague Airport is rooted in the company’s drive to open stand-alone stores where possible. Below, Ebbutt with Dermot Davitt outside the store on Wednesday.

Hamleys Director of Operations Daniel Chytil said: The new Hamleys shop is the first shop of its kind in Central Europe and we are delighted to be opening it in Prague. The Travel Format primarily differs from our classic shops in the selection of products carried. Despite its size, the Hamleys Travel Format preserves the unique atmosphere of Hamleys’ shops.”

He told guests: “We are delighted that Prague Airport chose us for this location and can say we have already had a strong start, though we only opened a few days ago.”

A dash of colour: A first of its kind travel concept in continental Europe for Hamleys.

Tom Plus Owner Tomás Krizek noted that Coccinelle this was the Czech company’s fifth store to open at the airport in seven years. “We are well known for our leathergoods offer in this market and we believe this store will work well among travellers,” he said.

Tomás Krizek: Hails the addition of fast-growing Coccinelle in its own space at the airport (below).

Marché International Chief Commercial Officer Hermann Ircher welcomed the chance to open in a new location, building on its portfolio of nine airports in Europe. “After winning a tender last year, in September we opened a Zigolini street café in Italian style and a small Marché offering a range of pastas and salads in Terminal 1. Then in December we opened this larger Marché here in T2. We are pleased to be up and running at this new location.”

He added: “Marché has been around for 35 years, offering food solutions for different channels including airports, rail stations, motorways and in city centres. Our philosophy is to create a market environment, with our food prepared out front, not in a back kitchen, where guests can see what we do. It’s an honest concept, one that uses only local and regional ingredients.”

Hermann Ircher: “Our philosophy is to create a market environment, with our food prepared out front, not in a back kitchen, where guests can see what we do. It’s an honest concept, one that uses only local and regional ingredients.”

He later told The Moodie Davitt Report: “We see that Marché suits the airport environment. The problem at the airport is that the offer is very similar in many places. You are missing restaurants where you can get something more serious, a salad buffet or somewhere with healthy, fresh food.

“There is also entertainment from the chefs at work in front of you. Colour and light are very important. This has a cosy atmosphere. The menu is a mix of standard elements like the grill or the vegetarian island, but we can also do local Czech-inspired food. The reaction is very positive, even in the low season, and business is good.”

Ircher added: “It’s our first time in the Czech Republic, so we had to set up a new organisation, no easy task, but we have used expertise from our other locations to launch these new restaurants, and will introduce more Czech staff in time. We want to grow here and look at further opportunities.” (Click into the podcast below for more comments from Hermann Ircher, in conversation with Dermot Davitt.)

Marché blends standard elements like the grill, salad bar and cakes with a locally-inspired offer; the concept is currently in place at nine airports.

In other F&B news, Lagardère Travel Retail will soon bolster its strong food service offer at the airport with new concepts, including in-house brand One Minute and a Burger King (landside in T1).

Over the coming years the airport will further expand T2 to add capacity and reshape its commercial offer. As reported, tenders for a ten-year duty free contract have been issued, with bids for a nine-store travel essentials concession to follow in March. Beyond this the airport company plans to develop land around the airport in partnership with private investors. It recently began the search for a hotel investor, as we revealed recently.

Prague Airport plans a major expansion of T2 in coming years, as part of an expected €1 billion investment in infrastructure and services, both physical and digital.

The latest openings takes to 114 the number of commercial units at Prague Airport and followed a tender completed in November 2017. The airport company said the key criteria for choosing the new tenants were: quality and range of services and products, shop design, experience and references. The rental bids only accounted for a one-third weighting within the decision-making process, said Prague Airport in a statement.

“Our strategy will continue to ensure the broadest and the most appealing range of services and assortments in the non-aviation business, while maintaining at a high standard of comfort for all passengers. However, it is necessary to develop construction and technological as well. For that reason, we have been implementing the long-term development plan for the airport. Alongside other aspects, it involves new non-aviation business segment development options,” Rehor added.

More on each of these projects, including comment on the airport company’s expectations of candidates for the duty free contract, will appear in our interview with CEO Václav Rehor, coming soon.

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