New Guangzhou Baiyun Airport T2 duty free concession goes to tender

A tender for the duty free concession at Guangzhou Baiyun Airport’s new Terminal 2, due to open in 2018, was issued this week.

Guangzhou Baiyun International Airport is China’s third-busiest and the world’s 16th-busiest airport, with 59.78 million passengers in 2016, up +19.3% year-on-year. Of those, some 13.58 million were arriving and departing international passengers. By 2020 total traffic is projected to reach 80 million and by 2030 100 million. China Duty Free Group is the incumbent retailer at the existing airport facilities.

The tender is being organised by GMG International Tendering Co. It covers 25 stores across the vast terminal, embracing some 3,544sq m of duty free space. While the tender has been divided into two bids, one winner can win the whole concession.

At TFWA’s recent China’s Century conference, Guangzhou Baiyun International Airport Co President Qiu Jiachen painted a bold picture of the airport’s traffic and retail prospects, pledging a “complete commercial eco-system” once T2 is open

The vast Chinese gateway is set to boom in coming years as passenger numbers surge and the new terminal eases capacity pressures.

Qualifying bidders must fulfil a series of criteria, including having had established duty free business in Mainland China on a profitable basis for the past three years.

Bid 1: 14 shops totalling 1,943sq m (first year); monthly guaranteed sales RMB15,860,000 (US$2.3 million); minimum concession fee 31%.

Bid 2: 11 shops total 1,601sq m (first year); monthly guaranteed sales RMB13,070,000 (US$1.9 million); minimum concession fee 31%.

Interested parties must register to bid between 2 and 8 May.

CDFG’s new contract covers 300sq m of retail space at T1 before the T2 opening. Once open, T2 will offer 700sq m of space and T1 will be extended to 400sq m.

Duty Free Expert Publisher Jason Cao commented: “This is the second duty free departure projects tender following on from Beijing Capital International Airport which is showing the future trend – i.e. more departure shops will adopt the bidding system for their duty free concessions.”