Miami looks to Westfield for duty-paid developments

Gavin Lipsith

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The developer will bring 36 new stores to the airport as part of a contract that could add $4m to Miami's annual concession revenues

Miami International airport (MIA) has appointed Westfield Concessions Management to operate 36 stores in one of several retail conessions tendered this year. The group signed the contract in July and will seek a mix of local and national branded sub-tenants for the stores, which will be rolled out between December 2004 and July 2005.

According to reports in the Miami Herald, the company aims to bring in tenants such as Borders Books, Brookstone and Stellar Partners' Ron Jon Surf Shop, unveiled at Orlando International airport earlier this year. Most of the new stores will be located landside in Miami's central terminal, between concourses E and H.

MIA commercial operations manager Patricia Ryan told the Herald that the contract was base on a $3.9m minimum annual guarantee or a percentage of annual revenue (ranging from 11% to 19% depending on the type of store), whichever is greater. She anticipated total annual sales of $32m for the new stores. The contract could bring an additional $4m in commercial revenues to the airport each year.

In a protracted and much-contested bidding process that started in January, Westfield beat competition from BAA USA and Chicago-based aviation consultants Unison-Maximus to scoop the contract.