Shanghai Hongqiao plots “refined and upgraded” retail mix with T2 tenders

CHINA. Shanghai Hongqiao International Airport has pledged to deliver a “refined and upgraded” retail offer in Terminal 2 through a series of tenders this year. The airport will also open a much-expanded commercial offer at its new-look Terminal 1 international zone in March.

The retail business is managed by Shanghai Hong Kong Airport Management Co Limited – a joint venture between Shanghai Airport Group and Airport Authority Hong Kong.

A spokesperson for Hongqiao International Airport said: “It has been our mission to create a world-class shopping environment in Terminal 2. With all major concessions including retail, F&B, packaged food and book stores due in 2017, it is our plan to make use of this opportunity to further refine and upgrade our retail and dining mix.

“As the T2 commercial area is large, we will extend some contracts while others are to be tendered. The whole process is expected to take around two to three years to complete. In 2017, we plan to launch tenders for various retail categories, including luxury brands, premium fashion, packaged food, books, and food & beverage.”

These key tenders are scheduled for launch between February and May. Other retail and café tenders will be released during the year. In addition, confirmed the airport company, the central Luxury Brand Boulevard will be enhanced with three new boutiques, which should open by the end of 2017.

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The opening of the Luxury Brand Boulevard in 2013 marked a milestone in Shanghai Hongqiao Airport’s commercial development; now the airport is plotting the next wave of expansion

On the opportunity for brands to tender directly, the spokesperson said: “Our commercial strategy is to ‘Go direct’ wherever possible and seek direct cooperation with the retail and F&B brands. We welcome brands’ participation in the upcoming tenders. We equally respect brands’ decision to appoint an operator to represent them. The purpose of this is to enhance the landlord’s discretion on brand selection, and help to safeguard the planned mix as well as the overall retail ambience.”

In T1, a reconfiguration of domestic and international zones will lead to the delivery of new commercial space. From March a new Building A will house international flights from T1, while from 2018 the redeveloped Building B will house domestic traffic.

The new T1 Building A will see duty free space extended by four times to 2,000sq m, covering eight stores in departures plus a 540sq m arrivals shop run by Sunrise Duty Free.

Duty paid retail outlets take up around 600sq m and house local packaged food, souvenirs and travel accessories. There will be eight F&B outlets in around 1,400sq m of space. These will feature food from Hong Kong and Macau, Japan, Italy as well as fast food chains.

*We’ll bring you more on Shanghai Hongqiao Airport’s commercial development in our Digital Print Edition for February.

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