TOP 5 ASIA OPERATORS: SUNRISE DUTY FREE
are just two appearing for the first time in the T1 enlarged mixed category store space. Arrival sales account for about
50% of total duty free revenue in Shanghai Pudong Airport today, with around 40% routinely pre-ordered by customers prior to return trips to the airport from overseas. To improve these services Sunrise
is expanding its arrival shop area in both T1 and T2 this year, providing customers with improved pick-up counter services to collect pre- ordered goods – while increasing the arrival retail floor area to improve its arrival hall duty free goods display. Due for completion in mid-2017,
Sunrise’s arrival shop expansion plan involves adding 500sq m to the two existing shops in T1. It is also adding 800sq m of
arrival shops in T2, where a new 500sq m shop will be built in the centre of the baggage hall. Two existing arrival shops are also to be expanded by 150sq m each. Total duty free space operated by
Sunrise in terminals T1 and T2 will cover around 6,100sq m once its arrival facilities are expanded in 2017. Over the past year, 14 brands –
including Cartier, Burberry, Michael Kors and Montblanc – have opened new boutique outlets constructed by Sunrise in T1. This is part of Shanghai Pudong’s plan to both expand and upgrade its duty free shopping facilities, while matching the quality to that already offered in T2. Sunrise now holds concessions
Beijing Airport in 2015, where duty free sales growth improved by around 8% as a result. Elsewhere, duty free sales growth
is estimated to have reached a high single-digit figure in 2015 at Shanghai Hongqiao Airport, the smallest of the three airports where Sunrise is also the duty free concessionaire. Duty free sales figures for 2016
had not been released by the airports at the time of writing. However, with all airports believed to have recorded sales growth during the year, Sunrise’s duty free numbers in 2016 are estimated to have exceeded RMB 10bn ($1.6bn). Perfume and cosmetics is still
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Sunrise’s largest duty free category, followed by tobacco. Liquor sales are in third place, followed by fashion and luxury brands. Meanwhile, in Shanghai Hongqiao
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Airport Sunrise has been busy fitting out its new duty free shops and boutiques in the rebuilt Terminal 1A area, which was due to re-open by the end of March 2017.
Also inside
Huge pax flow changes This is being prepared to handle all the international flights which will transfer from Terminal 2. Designed to accommodate some
to operate duty free departure and arrival shops at Beijing Airport, Shanghai Pudong and Shanghai Hongqiao Airport – with the two latter airports both belonging to the Shanghai Airport Authority. Sunrise is believed to have
recorded duty free airport sales worth around RMB9bn ($1.5bn) in 2015, according to sales figures previously released by Shanghai Pudong and Beijing Capital. Duty free sales grew fastest at
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5m international and 5m domestic passengers a year, international passenger facilities in T1A will include duty free retail space of 2,000sq m – which Sunrise will operate on the first and second floors in the airside international departure hall. The retailer will also operate two
perfume and cosmetics shops, a liquor and tobacco outlet, plus three
any other bidder for the duty free shops at Beijing Airport will have to consider is the potential impact of Beijing’s new international airport (‘Daxing’) on passenger numbers – and also on duty free spending levels at Beijing Capital Airport. «
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Shanghai Pudong in 2015, where an estimated 12% rise in international passengers resulted in duty free revenue rising by more than 11% in the airport’s shops and boutiques. In the meantime, international passenger numbers grew 6.3% at
MAY 2017
May 2017 20
YEARS 1997-2017
Sunrise Duty Free cosmetics and perfume store at Shanghai Pudong's T1.
TRBusiness Annual South Korea Report
One issue that Sunrise and any other company bidding to operate duty free shops at Beijing Capital Airport will have to consider is the potential impact of Beijing’s new international airport on passenger numbers – and also duty free spending at Beijing Capital Airport.
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boutiques on the first floor. This Hongqiao business is also
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LAGARDÈRE IN ROME | ACI CONFERENCES’ REVIEW | LOTTE DUTY FREE | DFS GROUP SHILLA | SUNRISE | EVER RICH | CHANGI AIRPORT | SINGAPORE CRUISE CENTRE | CHINA DUTY FREE | INCHEON AIRPORT | HDC SHILLA | HANWHA GALLERIA | SM DUTY FREE WILLIAM GRANT & SONS | PERNOD RICARD | BROWN-FORMAN | BEAM SUNTORY | BACARDI BEAUTY IN ASIA REPORT | COTY’S PHILIPPE MARGUERITTE | PEOPLE NEWS | NOW & THEN
relatively small compared with Sunrise’s business at Beijing Capital International Airport, where the retailer has operated the duty free concession for the past 11 years. Sunrise’s 10-year Beijing Airport
duty free concession actually expired at the end of 2015 and has since continued to operate this business on a contract extension basis at the discretion of Beijing Capital Airport. A further issue that Sunrise and
High passenger numbers are clearly having a positive effect at Shanghai Pudong Airport, where duty free sales appear to be growing fastest.
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