Lagardére Travel Retail has won a new duty free concession at Václav Havel Airport Prague, with 24 business units covering 4,372sqm.
The operator will bring a much wider offer tailored to individual passenger segments, new exclusive brands, stylish and modern shop design, digital sales elements, new sales channels, and expansion of the local range of products.
“The successful completion of the demanding concession procedure will bring the passengers a much broader and better quality offer of duty free products and services,” says Vaclav Rehor, Chairman of the Prague Airport Board of Directors. “On the other hand, thanks to the result of the concession procedure, Prague Airport was able to fulfil its strategy in the area of non-aviation business, which consists in continually expanding the offer, increasing the quality of products and services, lowering prices and at the same time increasing the non-aviation business revenues, which should even up the aviation revenues over the longer term.”
At present, non-aviation activities account for about 30% of Prague Airport’s total annual revenues.
The basic duration of the contract for the new duty free operator is 10 years and it can be terminated after seven years due to the development project of Terminal 2. The total amount of rent for the 10-year contract duration is up to CZK8 billion (€315m). The contract also includes the operation of the walkthrough zone in Terminal 1, which Lagardére Travel Retail already operates, as well as some other units.
Lagardére Travel Retail will open a total of seven different types of shops at Václav Havel Airport Prague within a few months. Each will be focused on a different assortment and brands, but in particular on a specific type of customer. Their offer will be adapted not only to the nationality of the passengers, but also to their age, needs, way of travelling and shopping or income.
The shops will acquire a new, stylish and modern design, with clear references to Prague and the Czech Republic, its history, architecture and art. Significant emphasis will also be placed on the offer of local products. In total, Lagardére Travel Retail will offer passengers 767 brands, of which 140 will be completely new. More than 80 brands will be local, of which 32 will appear at Prague Airport for the first time. More than 90 exclusive product lines will only be available at the airport.
The business units that were the subject of the public tender, including the walkthrough zone at Terminal 1, will be officially handed over to the tenant on 1 January 2020. Then, their reconstruction, which is expected to last several months within the full operations, will commence. Part of the space should be available to passengers at the end of March next year. All 24 business units will be completely re-opened by 30 June 2020 at the latest.