Lagardère Travel Retail and LAP sign profit-sharing duty free agreement
The goal of the innovate profit-sharing agreement is to unleash growth potential, even more pertinent in this time of uncertainty post-COVID.
Lagardère Travel Retail and Lima Airport Partners (LAP) have signed a long-term agreement based on profits sharing for the exclusive operation of Duty Free stores at Jorge-Chávez International Airport in Peru.
This is the first large-scale implementation of a business model that has been widely discussed in the industry to better balance risks and benefits between the airport and retail operator. Seen as a necessary evolution to maximise sales growth potential, this retail model has come into sharp focus during the coronavirus pandemic.
Effective from January 2022, the 13-year concession will include the introduction of the Duty Free brand Aelia at the airport’s Duty Free stores, which comprise a total of 3,000 square metres of commercial space.
The profit-sharing agreement will open up significant revenue potential for both Lagardère Travel Retail and LAP, as well as greater investment opportunities – ultimately benefitting travellers and enhancing the airport experience at the Lima Airport hub.
“We are thrilled to have found in LAP a like-minded partner who has demonstrated the most innovative and pioneering way of thinking, from selecting an operator via an innovative Partnership Selection Process up to the contract terms,” commented Dag Rasmussen, Chairman and CEO, Lagardère Travel Retail.
“We are also confident this is a stepping stone for our partnership with Lima Airport and its majority shareholder Fraport, so that we can all maximise our global expertise and reach to replicate this success elsewhere.”
Along with the duty free shops at Lima Airport’s existing passenger terminal, Lagardère Travel Retail will work with LAP to define a new retail experience for LAP’s future terminal, due to open in 2025.
Juan Jose Salmon, CEO of LAP stated:
“Our agreement will take us well into the next decade – as we move boldly into the new era of aviation. We are dedicated to delivering new and unique airport retail experiences at the Lima gateway to South America.”