Bids in for Changi T1 beauty concession

?The Civil Aviation Authority of Singapore (CAAS) has revealed that four operators submitted bids for the postponed fragrances and cosmetics tender at Singapore Changi airport terminal one. DFS Singapore, Weitnauer Singapore, Nuance-Watson and a joint venture between Alpha Retail and SUTL all made bids for the 6-unit, 3-year contract, which begins on April 1 2002 when incumbent Weitnauer's contract terminates.

All four companies offered the landlord an option of 40% of monthly gross sales. DFS' bid offered two other options: a minimum monthly payment of S$2.16m ($1.17m), or S$2.16m for monthly sales exceeding S$5.4m ($2.93m) plus 45% on incremental monthly sales from S$5.4-6.8m ($2.9-3.7m) or 48% on sales exceeding that amount. Weitnauer offered a guaranteed monthly minimum of S$2.2m ($1.2m), while Alpha-SUTL bid a minimum monthly payment of S$2m ($1.09m), with a top-up rent payment on annual sales exceeding S$55m ($29.9m). Nuance-Watson, meanwhile, offered a monthly guarantee of S$2.3m ($1.25m) and included a Passenger Acquisition Incentive Bonus, whereby monthly payments to the CAAS are increased whenever the authority brings in 10% more passengers than the same month during the previous year.

The CAAS is scheduled to announce the winning bidder shortly. The contract, which ends on March 31 2005, contains a two-year renewal option.

Full details will appear in the next issue of Duty-Free News International, out on February 1.