Sydney Airport is expecting a retail revenue boost over the next two years, after awarding a contract for the running of its duty free operations to a German company.
Gebr. Heinemann, one of the world’s biggest duty free operators, beat three other firms to the partnership, which starts from February 17th next year and runs until August 31st, 2022.
Speaking about the tender, the chief executive of the airport, Kerrie Mather, said that a strong demand for the contract highlighted the site’s attractiveness as a retail destination – a status she said was boosted by spending rates and passenger growth.
Airport officials said that the contract, which was previously run by Nuance Australia, should drive up retail revenues, since the shop floors were being revamped to fit in with Gebr. Heinemann’s own store designs and further initiatives were to be implemented after 2015.
In Sydney’s various suburbs, including Alexandria, Beaumont Hills and Eastwood, flyer printing could be used to advertise the new amenities to residents.
However, industry commentators have been divided over the new contract, with some believing that it may not be positive for the airport’s figures.
Analysts at Goldman Sachs, for instance, predicted a negative effect for the fact that the prior contract was agreed before the 2008 financial crisis.
According to the US investment banking firm, just over half (56%) of the airport’s revenue comes from duty free.
