Nuance extends key Sydney concession

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Sydney Airports Corporation (SACL) today announced that The Nuance Group has been appointed as the duty-free concessionaire for a further three years until November 2006. The new contract is expected to generate estimated sales of A$800m ($428m) over the three year extension period, with Nuance investing A$3m ($1.6m) to upgrade stores and develop additional units.

The Nuance Group currently operates 19 stores covering over 6,000sq m (64,560sq ft)  in Sydney's international terminal. With a throughput of over 8m passengers a year Sydney airport processes nearly half of Australia's international traffic. Downtown Duty Free, the Nuance brand in Australia has a long association with Sydney airport, having commenced as concessionaire in 1991. Both Sydney and Nuance have received acclaim for their innovative retail strategy, the Sydney wine and spirits offer and successful speciality stores such as 'Australian Wine Growers'.

The Nuance Group president & ceo Peter Petersen commented: "Sydney has always been one of the most important concessions in the Nuance portfolio and it has also proved itself as a showcase for our excitingly different approach to travel retailing. We are particularly pleased to see this successful partnership continued."

SACL ceo Tony Stuart said: "Turbulent times demand market responsive initiatives. Our decision to extend our partnership with a blue chip operator like Nuance adds real value to the airport and ensures we have in place a secure and enhanced revenue base. It will also ensure that both Sydney airport and Nuance remain at the cutting edge of airport retailing - providing product relevance and price competitiveness to our changing traveller demographic."

Nick Greiner, chairman of The Nuance Group Australia noted "the appointment of The Nuance Group for an additional three years is a significant vote of confidence from Sydney Airport. This also reflects the successful regeneration of business and airport travel retailing is returning to its normal growth pattern prior to September 11."