June 27, 2024 | Industry News
Representatives from Lagardère Travel Retail, HSC Group and Cambodia Airports Investment Company attend signing ceremony for new agreement
Lagardère Travel Retail and its local partner HSC Group have signed a 12-year agreement with Cambodia Airports Investment Company (CAIC) for the management of retail and F&B operations at Phnom Penh's Techo International Airport.
Techo International Airport, scheduled to open in 2025, is expected to become a new gateway for Cambodia and strengthen the country's global connections.
For Lagardère Travel Retail, this agreement marks a major milestone in its expansion in Asia. For the first time, Lagardère Travel Retail will operate three business lines in an underdeveloped country in a highly dynamic environment. The agreement also marks Lagardère Travel Retail's first direct operation of duty free stores in Asia and the first time the Group introduces a profit sharing model in ASPAC.
This rendering shows the types of retail options in the plans for Techno International Airport.
The Lagardère Travel Retail and HSC Group consortium's acquisition of the concession for Teco International Airport marks the start of a commercial partnership in which Lagardère Travel Retail will operate duty free stores as well as fashion, food services and travel essentials.
Lagardère Travel Retail can count on experienced local operator HSC's expertise in downtown F&B, duty free and international fashion. The 34 new stores at Teco International Airport occupy a total floor space of 6,500 square metres and are in addition to the more than 500 stores Lagardère Travel Retail already operates in Asia. According to the travel retailer, the stores will feature a carefully selected range of the finest international, regional and local brands.
The agreement is based on a profit-sharing model that is said to be revolutionizing the travel retail industry. The model creates a true partnership between the operator and the airport, demonstrating CAIC's innovative thinking as the first landlord to introduce the model in the region. The adaptability of the agreement over its 12 years will facilitate the testing of new brands, product offerings and technologies.
The luxury outlet will include Aelia, a premium duty-free store, a Marché food hall and innovative hybrid concepts such as EL&N Café, a lifestyle café with trendy pop-up stores, and Le Connoisseur store, a haven for fine cuisine, liquor and tobacco. The extensive range of stores will be complemented by two globally recognised concepts, Relay and Discover, operated in partnership with Monument Books. In addition to these brick-and-mortar stores, Lagardère Travel Retail will implement an e-commerce strategy and digital immersive experiences, in line with the ambitions of Teco International Airport.
Through the new management agreement, local products and brands will be highlighted alongside international brands.
“This agreement opens new vistas for our business in Asia and we are extremely grateful to our team and partners for helping us write this new chapter. We are confident that our unique profit-sharing model and our team's dedication will enable us to take retail and food services to the next level for South Asian and international travellers,” said Severine Lantier, COO and Chief Strategy and Development Officer, Asia.
Oknha Charles Vann, director of Cambodia Airports Investment Company, added: “Through our collaboration with Lagardère Travel Retail and HSC Group, we expect to bring significant added value to frequent flyers travelling to and from Phnom Penh. The expertise and international network that travellers will benefit from will position Cambodia as a major player in the Asian region.”
Lagardère Travel Retail said the deal “demonstrates the continued expansion of Lagardère Travel Retail's global footprint and its commitment to diversifying its business activities and delivering a seamless experience for passengers, whilst maximising the operational and commercial value delivered to landlords and brands.”
Region Asia
