On 11 January 2021, potential partners will have the opportunity to participate in a competitive tender to operate all of Avinor’s duty free and single price shops in Norway. The shops are located at the airports in Oslo, Bergen, Stavanger, Trondheim, Kristiansand, Ålesund, Tromsø, Bodø, Harstad/Narvik, Molde and Kristiansund.
The estimated total value of the contract is NOK 30 billion (€3 billion) in turnover throughout the duration of the contract – from 2023 to 2027.
“We have been very pleased with our existing operator, Travel Retail Norway,” says Joachim Lupnaav Johnsen, Executive Vice President for Commercial Areas, Avinor. “We now want to explore the international market to secure the best terms and the best shops going forward.”
Income from the duty free shops provides a significant part of Avinor’s financial performance and has traditionally represented 28% of the company’s annual revenue.
“By partnering with the world’s best and most effective operators, we can ensure a financial foundation that will enable us to deliver on our social mandate and continue operating our airport network in the years to come,” says Johnsen.
Unique position set to remain after pandemic
Duty free shopping holds a unique position in Norway, due to high purchasing power and an affluent population. Sales from international arrivals are particularly strong and represent more than 50% of the duty free sales at Oslo Airport.
The coronavirus pandemic has obviously had a negative impact on duty free revenue as a result of the marked decrease in passenger numbers. Future traffic will depend on travel restrictions, infection rates and, not least, progress in vaccination. Avinor’s long-term scenarios for international traffic represent a strong increase in 2022 and forecast a return to 2019 levels in 2024/2025.