Dufry Group and Hudson won new retail concession contracts at Minneapolis-St. Paul International Airport last week, but World Duty Free Group, which had originally been recommended as the preferred bidder for one of two 8-year News and Convenience stores packages, was replaced by Delaware North in the RFPs for 50 new food and retail concepts under review.
Minneapolis-St. Paul International Airport (MSP) offered a total of fifty concession opportunities encompassing 72,000 square feet of terminal space that were split among 14 batches, most of which include multiple venues and terminal locations. The Metropolitan Airports Commission (MAC), which owns and operates MSP, issued the request for proposals in March 2015.
Dufry was approved for the award of the 10-year Duty Free/ Duty Paid concession; and Hudson Group Retail, LLC was awarded the other News and Convenience store package up for bid. World Duty Free Group was recommended by the MAC’s Review Committee, but the recommendation was subsequently not approved by the MAC’s Management & Operations Committee during its meeting on Aug. 3.
The World Duty Free recommendation came under review again during the meeting of the full MAC board which took place on Aug. 17, when an amendment was made to substitute WDF for Delaware North. Key executives from both World Duty Free and Delaware North and various suppliers and partners presented impassioned arguments regarding the reasons each should be awarded the contract. In the final vote, Delaware North was the approved winner of the package.
Among the arguments against World Duty Free was a question of wage disparity and the acquisition of 50.1% of the share of WDFG by Dufry on Aug. 7, with the tender of the remaining 49.9% now underway.
Companies submitted a total of 54 proposals, which were reviewed on the basis of its financial plan, merchandising, concept and design plan, Airport Concessions Dis-advantaged Business Enterprise program participation, and management and operations plan. The proposal with the most points for each batch was selected for recommendation.
Of the seven Food and Beverage batches on bid, SSP America MSP and Midfield Concession Enterprises, Inc. were both approved for two packages each, with Aero Service Group, Inc., Delaware North-Angel Food-Hell’s Kitchen MSP, LLC and Caribou MSP Airport approved for one batch each.
Delaware North groups also won two other Retail batches, in addition to the News and Concessions package, and Pacific Gateway Concessions, LLC and MSP Innovations, LLC were approved for one batch each.
The expanded Duty Free/ Duty Paid stores will be built in the locations currently filled by Twin Cities News Connection on Concourse D, Subway and World Passage/Duty Free in the airport mall, and the arcade in Terminal 2.