Eight vie for Changi T3 watch concession

Emily Pacey

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Gassan Diamonds, DFS Venture Singapore and LVMH are all leading the bidding in the multi-optional watch tender at Changi's new terminal

Eight retailers have tabled bids for the Singapore Changi terminal three watch concession. Gassan Diamonds, DFS Venture Singapore and LVMH posted the strongest bids for the contract, which is divided into three options.

DFS Venture Singapore leads a field of four bidders for the most popular third option, which includes three outlets covering 353sq m (3,800sq ft). The retailer offered either 20% of monthly sales or a minimum monthly guarantee of S$433,000 ($283,006) depending on which is higher. It also promised to pay 8% on annual sales above S$22m ($14.4m).

Leisure Image tabled the second highest bid of 20% of monthly sales or S$418,000 ($273,202) in monthly rent. Luxury Ventures offered either 18% of monthly sales on the first S$1.8m ($1.2m) and 20% of sales above that figure, or monthly rent of S$324,000 ($211,764) in the first year, S$339,000 ($221,568) in the second year and S$354,000 ($231,372) in the third year.

Cortina Watch tabled the lowest bid of 18.5% of monthly sales or monthly rent of S$285,010 ($186,281).

Gassan Diamonds is competing with Richburgh Holdings for options one and three, which include a total of five premises in the north and south departure/transit lounges, covering 665sq m (7,158sq ft).

Gassan has offered to pay the Civil Aviation Authority of Singapore either 20% of monthly sales or S$333,360 ($217,882) in monthly rent for the first year, S$370,400 ($242,091) in the second year and S$407,440 ($266,300) for the third year for option one. For option two it promised to pay the airport authority 20% of monthly sales or monthly rent of S$375,030 ($245,117) in the first year, S$416,700 ($272,352) in the second year and S$458,370 ($299,588) for the third year.

Richburgh Holdings tabled a lower and simpler bid, offering 20% of sales or monthly rent of S$368,000 ($240,522) for option one and 20% of sales or S$401,000 ($262,091) per month for option two.

Two retailers tabled bids for the second, smallest option, which the airport authority has stipulated must be a single-brand outlet. The option covers one shop of 41sq m (441sq ft) in the south departure/transit lounge. Both retailers offered to pay 20% of monthly sales but LVMH Watch & Jewellery Singapore offered the highest minimum monthly guarantee of S$75,000 ($49,019) in the first year, S$100,000 ($65,359) in the second year and S$150,000 ($98,039) in the third year. The Swatch Group offered S$80,000 ($52,287) in monthly rent.