Bangalore airport has signed up a contract with Dufery which is a global travel retailer and has outlets in more than 200 international airports to serve duty-free goods to passengers. Now Dufery will operate duty-free shops at south India’s busiest airport under a newly agreed joint venture. Now the passengers coming from flights from USA to India will have a new leash of life for the shopping purpose. The operations under the new venture will start on April 1 next year. Bengaluru Airport is the gateway to India’s technology hub for international visitors. The airport issued an open tender in November 2021 which Dufery won.
Dufery is a Switzerland-based retailer and will partner with the operator Bengaluru International Airport Limited(BAIL) in a 50:50 joint venture. The venture will have a contract of 15 years to operate and manage duty-free outlets in the airport’s new terminal 2. Flights from USA to India will now land directly at terminal 2 of the airport.
Dufery has already seen strong growth in quarter 3 and already runs duty-free shops at Bengaluru’s Kempagowda international airport. It has done so since 2008 through one of its subsidiaries. As the work is still in progress at terminal T2 of the airport Dufery has taken a lead in securing the contract to open the outlet at T2 terminal which is schedule to complete by march 20203. By March 2023, they will migrate all international flights to this new terminal, which will significantly boost Dufery’s revenues. Passengers arriving on flights to Bangalore from the USA will delight in the variety of airport amenities and services available.
New terminal T2 is a terminal in a garden. The greenery of the complex which includes planted walls, artificial waterfalls, hanging gardens, and an outdoor garden surrounding a lagoon is a sight to behold. The Indian prime minister recently inaugurated the building, which is set to boost Bengaluru airport capacity by 25 million annually. This is good news from the retail perspective and that’s what led Dufery to cash in on the opportunity. On average the Kempagowda international airport processes around 17million visitors around the year making it the third busiest airport in the country. Dufery sees huge growth in the business and revenue from terminal 2 of the airport.
A joint venture to spur fashion, luxury, and beauty
Dufery’s contract covers almost 40,000 square feet spread across international arrivals and departures in the new terminal. Not only the core duty-free shops, but Dufery is also all set to introduce luxury boutiques and other formats. An assortment of fashion, luxury, and beauty will be available for passengers to choose from.
Both the airport operator and the swiss retailer are sharing the risk and reward and it becomes easier for the swiss retailer to move forward with new retail concepts as they seem to be commercially viable. The chief operating officer of Dufry stated in a report, “We are committed to enhancing passengers’ shopping experience and expanding our product assortment considerably.
BIAL is also pleased to deepen its ties with Dufery in a new terminal that is expected to delight Indian travelers. Dufery’s commercial experience and expertise will go a long way in taking the airport’s shopping experience to an entirely new level. Through the joint venture, the airport is looking to up its game across several categories, especially in luxury, fashion, beauty, and confectionaries. If you happen to catch your last minute flights to Bangalore, so now you know where to move for the best shopping experience at Bangalore airport.
This is not the first case for Dufery. They have entered into joint ventures and similar partnerships before as well with Milan Linate airport, Sharjah in the UAE, and across several US airports where ACDBE cooperation is often a legal requirement. Moreover, Airport owners have increasingly been moving towards joint ventures with retailers over the years to pocket more revenue. Some prime examples include Heinemann and Fraport at frankfurt airport; and Lagardere travel retail at Paris airport.
