Nuance seeks "new framework" at Sydney

John Rimmer

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The retailer will defend its contract at Sydney airport and will seek to develop the business under "a new contractual framework"

Nuance CEO Australia and New Zealand Christian Strang told RavenFox.com that the retailer hoped to play a full role in what he called "a new era" of travel retailing in Australia. The country's duty-free operators have struggled to maintain growth in recent years as a strong Australian dollar encourages travellers to spend abroad rather than at home. Rises in passenger numbers have led to increases in fees for those retailers operating under per-passenger-based contracts, even though the added passengers may not be spending big sums. The Australian government has also enforced severe restrictions on tobacco marketing.

Nuance insisted on its determination to retain its market leadership in Australia and to work with its airport partners to meet the new challenges under a "new contractual framework", said Strang.

"The Nuance Group is very focused on winning the new concession at Sydney airport and we have unequivocally expressed our interest," confirmed Strang. "This is not really about 'defending' a contract; it is about winning the opportunity to go forward into a new era. The ground rules are changing, the opportunity is changing and the dynamics are changing.

"We welcome the chance to develop the business under a new contractual framework which reflects the new realities of travel-retail in Australia and globally."

Nuance is expected to meet competition for the Sydney contract from several rival operators, including King Power Group (Hong Kong), James Richardson and Aldeasa.

For further details see the next issue of DFNI, out next week.