SPECIAL FEATURE: KING POWER HK
Philippines, India and China. However, the contract in Hong
Kong is yet to truly come to fruition, as TRBusiness learns. “We have been working on
several projects and have not really started the WHSmith business yet in Hong Kong; we secured the deal for Singapore domestic and are most likely going to start there first,” says Tuli. “In Hong Kong, it will take
us a little more time. It’s a great brand and we have plans to expand in these territories and are currently looking at opportunities with various landlords.”
Luxury tenancies Elsewhere, King Power HK in the same month was awarded five luxury watch and jewellery concessions at the airport as part of a joint venture with King Power Thailand. The brands in question – Cartier,
IWC Schaffhausen, Piaget, Panerai and Jaeger Le Coultre – are under the Richemont Group umbrella. Joint venture King Power
Global Development Company was successful following Airport Authority Hong Kong’s invitation for interested parties to tender for a substantial luxury tender in early 2018. This comprised 36 luxury licences
in Terminal 1, with Louis Vuitton, Alexander McQueen, Breitling, Chloe, Montblanc, Roger Vivier, Yves Saint Laurent, Salvatore Ferragamo, Panerai and Rimowa among others joining the mix. Meanwhile, two ‘icon’ duplex
shops were won by incumbent Chanel and Louis Vuitton; the latter replacing Rolex. “We are in the middle of the
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Due to the almost daily changing
picture it would not be appropriate to report it here, suffice to say the retail industry has been affected by a situation that intensified from June, with widespread disorder wreaking havoc for the airport and its retail operations. Asked whether King Power HK
had suffered adversely as a result, Tuli says: “I think it is fair to say the answer is yes. Everyone is suffering, including domestic businesses and hoping things improve.” Moving to mainland China and
September [correct at the time of writing – Ed] had been touted as the opening date for Pudong International Airport’s (PVG) new Satellite Terminal 1 (S1). While official confirmation was
not immediately available, US carrier Delta Air Lines has advised it will begin operating services beginning 23 September. As revealed by TRBusiness, state-
owned Shanghai Airport Authority (SAA) had invited solicitations of interest in duty and tax paid and F&B concessions at the Satellite in mid-2018. A total of 19 duty and tax paid retail
Hugo Boss at Shanghai Pudong International Airport.
“We will have to negotiate with the airport authority before committing to further expansion in Pudong T1.”
Sunil Tuli, King Power Group (HK)
between 2015 and 2017 across both terminals. This was part of an overhaul of the domestic Terminal 1 departures offer that was completed in 2016. At Terminal 2, the company won
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concessions within a 28,000sq m commercial area were up for grabs.
preparations and the concessions will start soon, in October and November,” confirms Tuli. “The watch and jewellery business
is great, and we are excited about this venture. Of course, the business in HKIA has slowed a bit due to the situation in Hong Kong, but we are hoping things settle down soon.” The wave of pro-democracy
demonstrations in response to the government’s extradition bill have rocked the special administrative region this year.
OCTOBER 2019
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‘Not disappointed’ at PVG Despite taking part in the bid, King Power HK subsidiary Shanghai Orient King Power Travel Retail Co Ltd lost out to Lagardère Travel Retail earlier this year. The contract, which is understood to run for five to seven years, will capitalise on an initial pax capacity of 38 million, lifting the airport’s total capacity to 80 million. Tuli comments: “Congratulations
Official Partner
to Lagardère; actually, we are not disappointed by the result because we worked out our bids based on the last 20 years’ business figures at Pudong Airport. “We’d like to re-look at it after the
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first contract term. Opportunities are always around.” Already a presence at PVG, Orient
King Power earlier this year reported year-on-year increases from several of its branded shops at the domestic Terminal 1 and Terminal 2. The company has overseen the opening of more than 40 shops
KPM has years of experience working at Macau International Airport.
TOP 10 OPERATORS 85
and improving the brand mix and adjacencies at T2 would also take priority on account of the above changes. «
Established 1998
the five-year duty paid tender in 2017 spanning 2,203sq m of space. “After the grand opening of the
Satellite Terminal Building at Pudong in September, the PAX flow will be reallocated among T1, T2 and the Satellite based on their boarding gates allocation,” explains Tuli. “Therefore, we will have to
negotiate with the airport authority before committing to further expansion in T1.” Tuli says prioritising efficiencies
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