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TheMoodieReport.com: Alpha captures new retail contracts at East Midlands and Bournemouth airports – 24/01/07
Source: ©The Moodie Report
By Dermot Davitt
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UK. Alpha Airports Group has been awarded crucial retail contracts at two of the UK’s leading regional airports.

At East Midlands Airport Alpha has been awarded a seven-year contract to operate duty free, catering and newsagents. This contract is expected to generate sales of in excess of £130 million over the seven-year term.

The airport is currently undergoing an £8 million redevelopment of the passenger terminal, to improve facilities for over 4.4 million customers every year. Alpha has committed to spending in excess of £2 million in developing and refitting the existing units, to include a refurbished and extended duty free store, a new airside newsagent, a bookshop and a refitted food hall, totalling over 11,500sq ft.

Construction began at the end of 2006 and the changes will be completed in time for the busy summer season, which starts in April.

Alpha has also won a seven-year contract with Bournemouth Airport to operate duty free and newsagents. The anticipated additional sales are in the region of £20 million over the term.

Alpha will invest £400,000 over the seven-year period and will, in 2010, be developing a new store within the terminal. Alpha will initially be operating in 1,200sq ft, but said this would increase to 3,000sq ft with the new development.

Alpha Airports Group Chief Executive Peter Williams said: “We are absolutely committed to improving travel retail in the UK's leading airports and are delighted to be working with both Bournemouth and East Midlands airports in providing a unique and more sophisticated shopping experience. The UK air traveller wants efficiency and quality and our investment in developing new concept stores will deliver them the best possible retail environment.”

Meanwhile, The Board of Alpha also announced a trading update before its close period for the financial year to 31 January 2007. The group will announce preliminary results on 27 March 2007.

“Alpha's domestic UK markets remain very competitive and continue to operate on low margins,” it said. “The UK security issues in August 2006 and the resultant restrictions to hand baggage allowances continued to be a factor in Alpha's UK retail outlets throughout the remainder of the year. While airside trading has gradually returned to pre-incident levels, the impact on landside outlets, with passengers having to proceed to security more quickly, remains and is expected to continue to be a factor in the future.

“Performance at Alpha's international businesses remains strong despite ongoing security issues in certain markets. The group is particularly pleased with the recent successes that have expanded our international reach into India and the United Arab Emirates and strengthened our position in Australia and Italy.”

The overall trading position is expected to be broadly in line with market expectations, Alpha said.