Duty Free Americas favoured at Miami

Gavin Lipsith

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The retailer's financial and technical bids were ranked above those of Dufry Group, Brasif and The Nuance Group/DFASS at an open selection process on June 6

DFA—backed by Disadvantaged Business Enterprise partners Concourse Concessions Inc and Siboney Wine & Spirits Merchants—bid highest, offering a $20m minimum annual guarantee (MAG) after projecting sales of $85m in the final year of the 10-year contract. The company's technical bid was also ranked first, followed by those from Dufry, Brasif and then Nuance/DFASS. The Nuance/DFASS financial bid of $11m, just over half of DFA's guarantee, was also ranked fourth.

The Nuance Group North America vice-president business development John Menchella confirmed the result, but insisted that he was not disappointed. "DFA's sales forecast averages out at about $65m per year," he argued, "and they put down a $20m MAG and there are several other costs besides that. Even if we could project sales as high as those, we would not be willing to pay that highly for the business. We will pick contracts that we believe we can make profitable."

Menchella said that he had not expected the decision to be taken so quickly, and that it was the first time he had seen the process carried out in such a way. He added that he was confident that DFA would now secure the contract. "Given the amount of money they put on the table for the minimum annual guarantee, I'm sure they will get the contract as long as they can execute a lease."

Dufry Group CEO Julian Diaz confirmed that the company had been outbid. "We submitted what we thought to be a more than reasonable bid," he told RavenFox.com, "but we lost out to a higher one from DFA - I congratulate them on their bid and wish them well with their project."

The contract at Miami covers 16 outlets across 42,000sq ft (3,900sq m) of retail space, although the airport's capital investment programme may mean that several outlets are moved during the contract's duration.