5 November 2012

A strong representation of local operators, a major injection of new brands, and a powerful line-up of international names characterise the latest concession awards for Kuala Lumpur International Airport 2 (klia2), announced in the past few days.

On Friday, Malaysia Airports held a ceremony to present the Letter of Offer to 35 local successful tendering companies for 24 retail, 18 food & beverage and three service outlets at klia2, which opens next April.

This Monday the airport company followed up with a ceremony for international companies that had been successful.

The list (see below) includes a fascinating line-up of some of travel retail's biggest names, including The Shilla Duty Free of Korea, Heinemann, Nuance-Watson Asia, WHSmith and LS travel retail. They are joined by a range of leading Malaysian companies including Valiram (Flying Emporium, Victoria's Secret and Men's Fashion Walk), Eraman (owned by Malaysia Airports) and many others (see full list below),

KLIA2 Tender Awards Ceremony

KLIA2 Tender Awards Ceremony

Malaysia Airports Managing Director Tan Sri Bashir Ahmad addressing the successful tendering companies at the concession awards ceremony: "All in all, the awards to local entrepreneurs encompass over 90% of awards at KLIA2 and 33% of the successful tenderers are completely new to the local airport commercial environment"

Eraman will run the biggest outlet, a major duty free mega store, featuring an extensive offer including liquor & tobacco and perfumes & cosmetics.

While local companies dominate the line-up, Malaysia Airports seems to have achieved a good and credible balance with international players. Korean travel retailer The Shilla Duty Free will run two perfumes & cosmetics stores under the brand name Beauty Collection at the Satellite International Departure, Level 2. The five-year contracts for the 131sm and 103sq m store begin in April.

A spokesman for The Shilla Duty Free told The Moodie Report: "We believe this will be a great opportunity as our first overseas cosmetics & perfume concession. It also reflects the appreciation of our experience, operational excellence and marketing capabilities by Malaysia Airports."

He noted that the klia2 success is the retailer's second recent success internationally, following important gains at Singapore Changi Airport T3 with Prada and Bottega Veneta at Terminal 3.

Heinemann too reacted with pleasure to the results, having secured some 1,240sq m of space in four locations before the sky bridge, including a walk-through concept. The company will sell perfumes & cosmetics, confectionery and some accessories and local specialities in a prime position. "We are so proud of it," Heinemann Asia Pacific Chief Executive Officer Steffen Brandt told The Moodie Report.

LS travel retail said it was excited to have been awarded the large 500sq m-plus Lifestyle Emporium airside concession (fashion, lifestyle, gifts, confectionery), with a cafe included (a new travel retail brand to be revealed soon). It was also awarded a 100sq m-plus destination merchandise store under the company's Discover brand, which is now present in several countries around the world.

LS travel retail ASPAC Chief Operating Officer Emmanuel de Place told The Moodie Report: "The win in klia2 is another successful step in LS travel retail's progression plans in Asia and in addition to the three other stores we have recently won at KLIA 1, we are very pleased with the success there and our entry into Malaysia.

"The plans and design for the Lifestyle Emporium are extremely exciting and proof that we have answered Malaysia Airports' request for an innovative travel retail concept that matches the dynamic environment at klia2."

Nuance Watson Asia will run two Taste & Treats food & confectionery outlets at the shopping precinct nearest to the international departure gates, measuring around 230sq m in total.

List of klia2 concession award winners 5 November 2012


Departure Public Concourse:

Shops at KLIA2, Departure Public Concourse

  • Cocoa King
  • KK Super Mart
  • The Body Shop
  • Carlo Rino
  • Beauty Express
  • WHSmith
  • Desigual
  • Royal Selangor
  • Spirit of Asia
  • Heng Heng
  • MyLife Healthcare
  • KFC
  • Bumbu Desa
  • Dim Sum On the Go
  • Pappa Rich
  • Marrybrown
  • Hui Lau Shan
  • Thelibrary
  • The Loaf
  • Starbucks
  • Chatime
  • Puffy Buffy
  • Dunkin' Donuts
  • Baab
  • Dome
  • Hong Leong Bank
  • CIMB Bank
  • Travel Essentials
  • Souvenirs & gifts
  • Local Food Hall
  • International Food Hall

Arrival Level Public Concourse (Sector 2 Level 2)

Shops at KLIA2, Arrival Level Public Concourse (Sector 2 Level 2)

Domestic Departure/Arrival:
  • Flying Emporium

International Arrival
  • Maybank
  • Kuwait Finance House
  • Eraman

Arrival level public concourse
  • Baggage Solutions
  • Menara Group - Pusat Perubatan Menara

Domestic Departure and Arrival Pier (Sector 1 Level 1a)

Shops at KLIA2, Domestic Departure and Arrival Pier (Sector 1 Level 1a)

  • Puffy Buffy
  • Dunkin' Donuts
  • Ezy Fruttaz
  • Baskin Robbins
  • Gloe
  • Giordano
  • Starbucks
  • Uncle Lim's
  • Impulse
  • Travel Essentials
  • Fashion

Domestic Departure and Arrival Pier Sector 3 Level 1a

Shops at KLIA2, Domestic Departure and Arrival Pier Sector 3 Level 1a

  • Station 1 Cafe
  • Famous Amos
  • The Baker's Cottage
  • Sweet Journey
  • Victoria's Secret
  • Baskin Robbins
  • Chocolate Galaxy
  • Puffy Buffy
  • Travel Essentials
  • Impulse

Contact Pier International Departure, Level 3

Shops at KLIA2, Contact Pier International Departure, Level 3

  • Eraman
  • Swatch
  • Heritage
  • Central Street

International Departure Sector 3 Level 2

Shops at KLIA2, International Departure Sector 3 Level 2

  • Loong Foong Dim Sum
  • Puffy Buffy
  • Travel Essentials
  • Impulse

International Departure Sky Bridge Sector 4 Level 3

Shops at KLIA2, International Departure Sky Bridge Sector 4 Level 3

  • be™
  • Eraman

Satellite International Departure, Level 3

Shops at KLIA2, Satellite International Departure, Level 3

  • Plaza Premium Lounge
  • Popeyes Louisiana Kitchen
  • McDonald's
  • The Bar
  • Urban Food Court
  • Menara Group - Pusat Perubatan Menara
  • Hong Leong Bank
  • Eraman
  • Travelex
  • Airside Transit Hotel
  • Premium Food Court
  • Relaxing Zone
  • Duty Free Walkthrough 2

Satellite International Departure, Level 2

Shops at KLIA2, Satellite International Departure, Level 2

  • Caring Pharmacy
  • Khazanah
  • Quiksilver
  • Gold City
  • My Duty Free
  • Taste & Treats
  • Starbucks Coffee
  • Eraman
  • Beauty Collection
  • Discover Malaysia
  • WHSmith
  • Ladies' Fashion Walk
  • Men's Fashion Walk
  • Studio Lounge
  • IT and Gadgets Zone

Satellite International Departure Sector 5 Level 1a

Shops at KLIA2, Satellite International Departure Sector 5 Level 1a

  • Station 1 Cafe
  • Famous Amos
  • Impulse
  • Travel Essentials

Satellite International Departure Sector 7 Level 1a

Shops at KLIA2, Satellite International Departure Sector 7 Level 1a

  • Heritage
  • Sweet Treats
  • From My Oven
  • Dunkin' Donuts
  • Travel Essentials
  • Impulse

Background To The Awards

Malaysia Airport said it received an "overwhelming response" to its ambitious programme of commercial tenders for space in klia2, with over 1,600 companies attending the tender briefing sessions. These included retailers as well as food & beverage and services operators.

Tender briefings were conducted in phases with 133 different opportunities made available. Phase 1 was conducted in December 2011, Phase 2 at the end of February/early March 2012, Phase 3 in April 2012 and Phase 4 in May 2012. The first, second and third phases involved 27, 39 and 37 tenders respectively. The fourth phase involved 30 tenders comprising individual lots as well as packaged deals.

Overall, 161 outlets had been tendered for the first day of operations at klia2. At the presentation to local operators last week Malaysia Airports Managing Director Tan Sri Bashir Ahmad said: "Malaysia Airports is very pleased with the tender results as it well epitomises the travel retail aspirations for klia2. The brands and products proposed by the successful bidders were also perfected by creative concepts, originality and engagement - values that are synonymous with the klia2 retail brand principles.

"All in all, the awards to local entrepreneurs encompass over 90% of awards at klia2 and 33% of the successful tenderers are completely new to the local airport commercial environment. We have secured a complementary mix of local travel retail business partners as well as new business partners to provide a vast variety of offerings as well as deliver the creme-de-la-creme of travel retail experience to our customers.

"The awards also demonstrate Malaysia Airports' unwavering support towards the development and growth of local entrepreneurs," added Tan Sri Bashir Ahmad.

Scheduled to open in April 2013, klia2 is designed to offer an enhanced shopping, dining and relaxation experience aimed at heightening the vibrancy of the airport.

Faizah Khairuddin

"We are well on trajectory with meeting
the retail aspiration for KLIA2",
Puan Faizah Khairuddin,
Senior General Manager
Commercial Services,
Malaysia Airports

Malaysia Airports Senior General Manager of Commercial Services Puan Faizah Khairuddin added that the commercial spaces are designed for success, balancing the needs of retailers and customers. "We will work together with retailers to stimulate customers' senses and empower them to do things their way. There will be ample opportunities to expand on technology platforms, marketing channels, trends and services," she said.

"Travellers will start their journey as a ?etail Explorer' from the public concourse area and be ultimately pampered with more variety and choices at the airside area that is after security and immigration check points."

Khairuddin added that the public area will feature a strong focus on food & beverage, with a wide array of dining concepts and brands, fast food outlets, lifestyle cafes, casual dining restaurants and grab-and-go counters offering local and international fare. The public concourse will also have a pharmacy and books and gifting outlets to cover the basic travel needs of passengers.

The restricted area will provide a wide range of offers from confectionery, perfumes and cosmetics, fashion and accessories, gifts and souvenirs to beauty and wellbeing as well as food & beverage. "Travellers and visitors would be able to buy young and exciting brands such as Quiksilver, Roxy and Desigual as well as explore beauty and health prospects at The Body Shop," Khairuddin said.

"Dining concepts vary to cater to the needs of our travellers - there will be a choice of casual dining restaurants namely PappaRich, Loaf and Bumbu Desa for travellers to enjoy a scrumptious meal leisurely. Coffee lovers would be delighted to know that Starbucks and Dome are among the offerings available. For those on the rush, we have a selection of grab-and-go concept outlets such as Baskin Robbins, Dunkin Donuts and Famous Amos. The fast food selection will include KFC and McDonald's. Also, making a debut at klia2 is The Library, Chatime and Nonya House," she added.

"We are well on trajectory with meeting the retail aspiration for klia2. We want to change the mind-set of travellers, making them realise that their vacation begins and ends at klia2. The other aspect to the brands and products are the exciting creative concepts, originality and engagement offered by each outlet. Ultimately, we want to engage our travellers and give them an experience that is ELITE - Experiential, Liberating, Innovative, Thrilling and Ever-changing. We will work with our business partners to ensure that they will keep coming back for more to explore klia2 as a destination," Khairuddin enthused.

Source: www.moodiereport.com