King Power wins Changi T3 confectionery contract

Emily Pacey

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King Power is the first victor in a two-part award for Singapore Changi airport terminal three’s confectionery and delicatessen contract

Civil Aviation Authority of Singapore (CAAS) has awarded part of Singapore Changi airport terminal three’s chocolate, candy and delicatessen concession to King Power Group (Hong Kong). The retailer beat competition from DFS Group, Dufry Group, Focus Network Agencies, Heinemann Kwang Sia and Swizzle to win the 150sq m (1,614sq ft) concession, which is located in the terminal’s north departure/transit lounge.

The airport has not yet confirmed which company has won the right to operate the second confectionery and delicatessen shop, located in the south departure/transit lounge. Bidders include DFS Group, King Power, Dufry Group, Focus Network Agencies and Heinemann Kwang Sia.

For premises A, which it won, King Power offered to pay the airport either 30% of total monthly sales or a minmum monthly rent of S$196,875 ($128,574) in the first year, S$216,563 ($141,433)  in the second year and S$238,219 ($155,576) in the third year, depending on which is higher.

The highest bidder for premises B was also King Power, which offered to pay either 30% of total monthly sales or a minimum monthly guarantee of S$284,288 in the first year, S$312,716 ($204,239) in the second year and S$343,988 ($224,664) in the third year. DFS Group tabled the second highest bid for premises B, promising either 30% of total monthly sales or monthly rent of S$300,800 ($196,490) whichever is higher.

King Power managing director duty-free and travel-retail Sunil Tuli said: "I am very pleased that King Power Singapore has been awarded this concession in this very prestigious terminal.

“CAAS is looking for state–of–the–art retail in this terminal, and our being awarded this concession is ... recognition of our capabilities and the quality of retail and services we provide to the airport, to our customers and to our suppliers and partners. Of course, we will ensure that we...meet the high standards set by CAAS."