U Aung/Xinhua
Singapore Myanmar Investco (SMI) has signed a deal with local firm Royal Golden Sky Company to provide merchandising, management and consultancy service for the duty-free retail space at the upcoming Terminal 2 of Yangon International Airport.
The Singapore-listed firm’s wholly-owned subsidiary, SMI Retail Pte Ltd, entered into the agreement covering duty-free, retail and F&B outlets at the new terminal for an initial period of five years, starting March 2016.
There’s a provision of extending the deal for five more years, SMI said in a Singapore Stock Exchange (SGX) filing.
According to the deal, SMI Retail will appoint RGS as its exclusive distributor of duty-free merchandise for sale in Yangon International Airport, including the new terminal, while it will provide management and consultancy services to RGS for the operation.
With growing number of travellers Myanmar has seen an increase in flight numbers in the last three years, overstretching the small Yangon International Airport. The new international terminal is expected to allow the airport to receive more than triple the number of international passengers travelling to Yangon.
With a total retail space of approximately 6,725 square metres, the area will feature 43 shops ranging from retail brands to F&B franchises. SMI said it has already reached agreements with several international fashion and lifestyle brands as well as F&B franchises.
The group’s exclusive 10-year supply agreement with DFS, signed earlier in May, will form an integral part of the company’s travel retail business model, SMI said. Both initiatives will augment the group’s market position in the burgeoning travel industry in Myanmar, it added.
SMI said the operations of these duty-free shops, retail and F&B outlets will start from March 2016 and will be progressively rolled out over the next few months.
Mark Bedingham, president and chief executive officer of SMI, said SMI has been able to use the capabilities of its senior executives to convince Yangon Airport authorities to allow them provide duty free, luxury and lifestyle brands.
“This will allow SMI to have full exposure to the expected rapid growth in tourism and business travel,” he said.
From: Myanmar Business Today