Four vie for Changi T3 specialist and branded electronics contracts

Emily Pacey

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Dufry and Sony lead the bidding in two electronics tenders at Singapore Changi airport terminal three

Civil Aviation Authority of Singapore (CAAS) has received two offers for its selection of specialist electronics concessions at Singapore Changi airport terminal three. Dufry Singapore and Sprint-Cass are vying for the multi-option photographic equipment, lifestyle electronics and computer concession. The contracts are for three years with an option to extend for two years.

Dufry submitted consistently higher bids across all four premises options. For the lifestyle electronics and computer concession, termed premises A, the retailer offered to pay the airport either 10.5% of sales, or a monthly rent of S$125,286 ($81,886) for sales up to S$1.35m ($882,353) per month, or a minimum monthly guarantee of S$141,488 ($92,476) for sales above that figure.

Sprint-Cass offered either 9% of total monthly sales up to S$1m ($653,595), 10% for sales up to S$1.35m, 12% of sales over that figure or a minimum monthly rent of S$39,943 ($26,106), depending on which is higher.

For premises B, the photographic concession, Dufry offered 10.5% of total monthly sales or a monthly rent of S$66,666 ($43,572) for sales up to S$730,000 ($477,124) per month, or 10.5% of total monthly gross sales or a monthly rent of S$76,734 ($50,153) for sales above that figure.

Sprint-Cass offered to pay 3% of total sales up to S$700,000 ($457,516) per month, 4% for sales up to S$1m, and 5% for sales above that figure. Alternatively, it offered to pay a minimum monthly guarantee of S$9,034 ($5,904).

For premises C, which will offer photographic equipment, lifestyle electronics and computers, Dufry offered to pay the airport authority either 10.5% of total monthly sales or a monthly rent of S$131,670 ($86,058) for sales up to S$1.41m ($921,568). For sales above that figure it promised to pay either 10.5% of monthly sales or S$149,278 ($97,567) per month in rent.

Sprint-Cass said that it would pay 7.5% of total monthly sales up to S$750,000 ($490,196), 9% of sales up to S$1m, 10% of sales up to S$1.35m, or a minimum monthly guarantee of S$30,943 ($20,224).

For the final option, which covered all three premises, Sprint-Cass did not make an offer, while Dufry tabled a bid of 10.5% of total monthly sales or a monthly rent of S$334,066 ($218,344) for sales up to S$3.5m ($2.3m) and 10.5% or S$378,000 ($247,058) for sales above that amount.

CAAS also received two bids for its international brand name electronics concession in the north departure/transit lounge in T3. Sony led the bidding, offering to pay either 9% of monthly gross sales or a minimum annual guarantee of S$33,000 ($21,568), depending on which is higher.

Its rival Market One promised to pay 3% of total monthly sales for sales up to S$500,000 ($326,797), 4% for sales above that amount, or a monthly rent of S$17,000 ($11,111), whichever is higher.

The contract lasts for three years with no option to renew on expiry.