CHINA. Bids closed yesterday for the duty free contracts at Shanghai Pudong Airport and Shanghai Hongqiao International Airport with awards expected next month, according to a source at Shanghai Airport Authority.

The long-time incumbent is Sunrise Duty Free (Shanghai). As revealed by The Moodie Davitt Report, state-controlled rival China Duty Free Group (CDFG) acquired 51% of Sunrise Duty Free (Shanghai) Co. Ltd from Base Rich Investments Limited and Shanghai Wenyuzhai Books Co. Ltd in February this year.

The US$239 million deal covered all Sunrise Duty Free’s business at Shanghai Pudong Airport (the main location) and Shanghai Hongqiao International Airport. That transaction followed a similar 51% acquisition by CDFG last year of Sunrise’s Beijing Capital International Airport operations.

CDFG President Charles Chen, pictured during his interview yesterday with The Moodie Davitt Report Chairman Martin Moodie at the HKIA opening of Duty Zero by cdf, is hopeful the CDFG/Sunrise combination can land the valuable Shanghai airports duty free contracts.

CDFG President Charles Chen confirmed to The Moodie Davitt Report yesterday at the opening of Duty Zero by cdf at Hong Kong International Airport that CDFG/Sunrise was optimistic of retaining the business.

However, the new entity faces competition in the form of another state-owned company China National Service Corporation for Chinese Personnel Working Abroad (CNSC).

As revealed by The Moodie Davitt Report, CNSC, which previously only ran downtown duty free stores, opened its first airport duty free store – an arrivals shop at Chongqing Jiangbei International Airport – on 29 August 2017. As reported, the store is a landmark development for the state-owned enterprise, as it represents CNSC’s airport duty free debut.

*Footnote: We’ll bring you an extended interview with Charles Chen, in which he speaks about the Shanghai opportunity, Duty Zero by cdf and the company’s far-reaching vision, in a special edition of The Moodie Davitt e-Zine that profiles the HKIA opening. Out soon.

**Shanghai Airport Authority is host for this year’s Trinity Forum, to be held on 31 October and 1 November. The company will speak about forthcoming commercial expansion and retail and food & beverage opportunities at the city’s two airports in a special session at the event. Details of the full agenda will appear shortly. For registration and hotel bookings, click here.

Sunrise Duty Free (Shanghai) is the long-time incumbent for the duty free concession (Pudong pictured) but could face competition

Note: The Moodie Davitt Report has teamed up with Chinese travel retail information provider DutyFreeExpert to provide a new fortnightly Chinese language industry information service on WeChat.

i免税中国 (literally ‘Love Duty Free, Love China’) was launched on the popular Chinese social media platform in May. It will provide news from the Chinese travel retail and duty free market and on Chinese shopping overseas. It will also bring Chinese readers highlights of the most important international brand, retail, aviation and tourism developments. Click here for the latest edition.

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