DAA seeks tenders for airport store that netted €8.36m
The booming business of a single health and beauty store at Dublin Airport, which clocked up sales of €8.36m (ex Vat) last year, is up for grabs.
The store is operated by retail giant Boots, and now the DAA is looking for interest from prospective retailers to manage and operate the store over the next five years.
It is one of Boots flagship Irish stores and the retailer will be anxious to retain its business there in the DAA competition.
The most recent accounts for Boots Ireland would indicate that the Dublin Airport outlet is one of the best performing stores in Ireland, based on the estimated average revenue per store.
In 2016 Boots Ireland recorded revenues of €367m from 84 stores and the overall revenues include online sales.
The business is ideally located airside for the 49,589 air passengers on average that walk by the store each day after passing security in Terminal One.
The rent roll from the store will be a strong contributor to the DAA's annual revenues from its retail/catering concessions.
In 2016, the DAA's revenues from direct retailing and retail/catering concessions increased from €132.2m to €145.85m.
The tender is one of two high-profile retail tenders now put on the market by the DAA - the second relates to the operation of five books/news/confectionery units airside and landside - or before security - at Terminal One.
The stores are operated by UK retail firm WH Smith and the DAA states that the stores enjoyed revenues of €14.7m (ex Vat) last year.
Four of the stores are airside with the 5th landslide at Terminal One and the revenues recorded by the stores provide a strong proportion of WH Smith's revenues in Ireland.
The company's most recent accounts for here show that it enjoyed revenues of €23.69m in the 12 months to the end of August last.
The tender is also for a five-year period and WH Smith will be expected to make a strong bid to retain its Terminal One business.
The DAA, headed by CEO Dalton Phillips, pointed out that Dublin Airport handled 85pc of all air traffic into the Republic of Ireland in 2017.