SWEDEN. Swedavia has signed a new, seven-year concession agreement with incumbent Dufry to develop and run the airport group’s tax free and duty free shops.

State-owned Swedavia owns, operates and develops ten airports across Sweden.

Sales over the contract term are estimated at SEK8-10 billion (US$955 million – 1.2 billion). Under the terms of the deal, Dufry will make major investments to enhance the passenger retail experience at Swedavia’s airports.

The largest investment is a planned walk-through shop covering over 2,000sq m at Stockholm Arlanda Airport Terminal 5.

This store will be the flagship of the terminal’s new retail area to be completed in 2021. The resultant T5 marketplace is part of Swedavia’s new commercial concept, designed to provide passengers with a “totally new experience” in food & beverage, retail and commercial services, the airport company pledged. The commercial concept is scaleable, Swedavia noted, and will also be launched at Göteborg Landvetter Airport.

Sealing the deal: (Left to right) Swedavia EvP Commercial & Real Estate Karl Wistrand; Dufry Division CEO UK, Central and Eastern Europe Eugenio Andrades; Swedavia CEO Jonas Abrahamsson; and Dufry General Manager Sweden & Finland Karl Walter

(Left to right) Karl Walter, Eugenio Andrades, Jonas Abrahamsson and Karl Wistrand

“With Dufry, we have a very strong partner with a great amount of innovativeness and the economic potential to drive development in the rapidly changing field of retail,” said Swedavia Executive Vice President Commercial & Real Estate Karl Wistrand.

“The investment plans that Dufry has presented are impressive, and we are pleased to note this major investment in the Swedish market. Our commercial business constitutes a crucial element in Swedavia’s SEK 16.5 billion (US$1.97 billion) investment through 2020 to optimise our airports.”

The shape of things to come: An artist’s impression of the entry to Dufry’s new walk-through  store at Stockholm Arlanda Airport Terminal 5

Dufry’s offering will comprise an innovative product mix, a clearer positioning of brands and locally adapted ‘destination zones’. A new-look Discover Sweden area will feature a design inspired by the Falun-style red cottages that are commonly seen in the country.

A particular focus will be placed on products for the fastest-growing target group, millennials, including a range of in-store digital solutions. Dufry’s loyalty programme RED will be made available in the Swedish airport stores, to deliver better value and unique promotional benefits to all customers, Swedavia said.

Seeking out the real Sweden: Destination merchandise will play an integral role within the Dufry offer of the future at Swedavia airports

“We would like to thank our partners at Swedavia for the ongoing trust and belief they have shown in us through the tender process. We are delighted to be able to continue to work together and our dedicated teams are committed to developing outstanding stores for Swedavia and for our customers”, said Dufry Division CEO UK, Central and Eastern Europe Eugenio Andrades.

The seven-year concession agreement was signed between Swedavia and The Nuance Group (Sverige) AB, which is part of Dufry.

The retailer has managed duty free stores in Sweden for the past 16 years. Dufry has six stores at Stockholm Arlanda, two at Göteborg Landvetter and one each in Malmö, Bromma, Luleå, Umeå, Åre Östersund and Visby airports. All will be refurbished in the next two years as part of the investment plan.

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