Operators on alert as Wellington tenders

Anna Fenton

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Four years before Duty Free Stores Wellington's contract expires, the New Zealand airport is to tender its duty-free operation

Wellington Airport is to tender for a new duty-free operator even though its existing contract with incumbent Duty Free Stores Wellington still has four years to run.

Expressions of interest are to be sought from leading operators including DFS Group, The Nuance Group, King Power and Alpha Retail, plus Fijian retailers Motibhai Group and Tappoo Group. The airport told RavenFox.com that it was seeking a partner "to work with us through planning and implementation of terminal redevelopments and to commence trading in stages as those developments permit". 

"Our incumbent duty free operator Duty Free Stores Wellington has four years to run on what was an unusually long lease," said Wellington Airport ceo Simon Draper. "We have worked together since the opening of the new terminal and have witnessed considerable growth in their operation. We have been in private discussions with them for some time and we have worked in good faith to try to agree a deal for the longer term. Unfortunately, despite the efforts of both parties, that has not been possible. Naturally this does not preclude them from the next stage of discussions."

He admitted that it was unusual to seek a new retail tenant so long before the expiry date of the existing lease. "But this will be a welcome change for operators who are used to having to tender and commence trading in very short timeframes."

A tender document will be released soon, said Draper, with expressions of interest required by the end of May. "Then we will want to get together with interested parties. Following this the invitation to tender will be issued to those short-listed." Only one new contract is envisaged.