Shanghai Pudong plans big duty free expansion

By David Hayes |

Shanghai Pudong International Airport is planning to increase Sunrise Duty Free’s duty free departures and arrival retail space by around 50% in T1 and T2 to increase sales turnover above the estimated RMB.40bn (US$650m) level in 2014.
China’s second-busiest airport expects to have its T1 duty free departure shopping area complete by mid-2015, ahead of the opening of a third duty free arrivals shop in the fourth quarter in T2 which will increase the terminal’s shopping space by 150%.
“This year we will increase our T1 duty free departure shopping space by about 2,000sq m. The new T1 shops will open in May,” said Qu Yibing, Planning and Business Department Vice Director of Shanghai International Airport Co Ltd – the operator of Pudong Airport.

Speaking exclusively to TRBusiness he said: “We will also open a new arrivals shop covering about 300sq m in T2 in October. At present we have two inbound duty free shops in T2. The new shop will be located in the middle – in between the two existing shops.

Shanghai Pudong’s duty free T2 arrivals shop.

NEW TERMINAL 2 ARRIVALS SHOP

“We are planning the T2 arrival shop now. The new shop will sell mostly cosmetics, tobacco and perfume; as the inbound shop area is somewhat limited, it will sell popular products.”

 

Total duty free sales space in Pudong Airport T1 and T2 is currently around 4,700sq m, with facilities in T2 much larger and occupying twice the T1 area.

 

“In T1 our new duty free shops will be located in the central area of the North Wing. It will be a complete renovation of the area. We are removing some old duty free shops and other shops there,” said Qu.

 

“Our T1 renovation started in November and will be completed in May. The remaining old shops are still open in the central area. After the renovation is completed the duty free shopping area will be enlarged.
“The old shops in the area will then be renovated after the new shops have opened, as we do not want to lose the revenue.”

 

As is well known, Pudong Airport’s duty free shops and boutiques are run by Sunrise Duty Free under a 10-year contract that is due to expire in 2020.

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