Delhi airport to invite bids for retail spaceNovember 25th, 2008 - 12:57 pm ICT by IANS
New Delhi, Nov 25 (IANS) Delhi airport developer, Delhi International Airport Limited (DIAL) will invite next month global brands to bid for 20,000 sq. metres of duty-free retail shop space within the international airport, a DIAL official has told IANS.At present, only 800 sq metres of retail space is available for retail shops at Delhi’s Indira Gandhi International airport.
Another 20,000 sq. metres will become available for duty free retail shops once the new T3 terminal comes up by early 2010, the official said.
The bidding for this space is expected sometime later next year.
Over 400 global brands have already expressed their interest in obtaining a a retail outlet at the airport, the official said.
While retail shops are expected to do business of over Rs.65 billion annually, experts said DIAL will earn up to 25 percent of its revenue through space rentals.
In November 2006, the Alpha Pantaloon Consortium, a consortium of UK-based Alpha Airports Group and Pantaloon Retail (India) Ltd, was awarded the contract to run a duty free shop for 39 months for a whopping Rs.5 billion.
“The consortium has a licence to operate only at the T2 terminal which will expire next year. Fresh bids will be invited for the T3 and other terminals next year,” DIAL’s associate vice president Arun Arora told IANS.
The Alpha stores at the Delhi airport features an extensive range of products of some of the largest and most popular brands in the world. These include Armani, Gucci, Christian Dior, Calvin Klein, Nike and Swatch.
Asia accounts for nearly 35 percent of total global duty-free sales. A booming economy and a growing international air traffic has created major opportunities in duty-free sales in India.
Airports are increasingly offering up-market shopping facilities, retailing premium electronic products, gourmet food and fashion accessories, an airport official said.
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