James Richardson wins Tel Aviv T3 concession

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The Israeli Airports Authority extends its relationship with James Richardson at Ben Gurion by awarding it the principal duty-free tender

James Richardson has been awarded the main duty-free liquor, tobacco, fragrances, cosmetics, confectionery and drugstore contract at Tel Aviv Ben Gurion airport's new terminal three, which opens next June.

The contract covers over 3,000sq m (32,300sq ft) of retail space both airside and landside and is valued by the Israel Airports Authority at $1.5bn. According to Israeli newspaper Ha'aretz the company was one of only two bidders, the other being Sakal Bros, and the Richardson bid was around $20m above the $68m minimum set by the authority.

The business includes the operation of a duty-free pickup service, allowing Israeli passengers to buy on their outbound journeys and collect on their arrival home. Spend per passenger at Ben Gurion stands at $85-90.

The second T3 tender, for electronics retail, closed yesterday, with local media reporting that only three companies participated: James Richardson, Sakal and local electronics retailer Elco. James Richardson will not be allowed to win the second tender after taking the first, and analysts are tipping Elco to win.