Wellington incumbent seeks injunction over tender

Gavin Lipsith

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Duty Free Stores New Zealand is seeking to stop the airport from appointing another retailer in its current duty-free tender

The winner of the current tender would take space alongside Duty Free Stores' existing operation from July 2007 until 2009, when the new retailer would take over the entire operation. Duty Free Stores claims that if it does not win the tender—The Nuance Group and King Power Group (Hong Kong) are also on the airport's shortlist—the layout of the temporary stores will mean that passengers pass through its competitors stores first.

Duty Free Stores—which operates at six airports including Adelaide, Hamilton, Dunedin and Queenstown—applied to the Wellington high court in October, and the matter is expected to go to arbitration in February.

Wellington CEO Simon Draper told local press that he disagreed with the claims and that retaining Duty Free Stores had been the preferred option. He argued that Duty Free Stores would have the advantage as its store would be closer to the departure lounges.

Duty Free Stores operations and marketing manager Grant Archibald confirmed that the company was taking legal action. He told RavenFox.com: "The airport seems to be following a very unorthodox concession planning strategy and we, like many others, question if the results could possibly justify the means."

For more details see DFNI December 15, out later this week.