Lagardère Travel Retail and its local partner HSC Group have signed a 12-year contract with Cambodia Airport Investment Company (CAIC) to manage the retail and food and beverage operations at Phnom Penh's Techo International Airport, which is due to open in 2025 and is expected to become Cambodia's new air gateway.
This agreement marks a first for the French company, which will operate its three business lines in an entirely new country and "in a very dynamic environment". It is also Lagardère Travel Retail's first direct operation in the duty free sector in Asia and the first profit sharing model implemented by the group in the Asia Pacific region.
An international company founded 170 years ago in France, Lagardère Travel Retail operates more than 5,120 points of sale in airports, railway stations and other concessions in 42 countries. In 2023, Lagardère Travel Retail generated sales of €6.6 billion.
Lagardère Travel Retail has announced that it will benefit from the expertise of local operator HSC in the areas of catering, duty free and international fashion. The 34 new outlets at Techo International Airport will cover a total surface area of 6,500 square metres and will add to the more than 500 shops that Lagardère Travel Retail already operates in Asia.
The deal is based on a profit-sharing model, which is set to redefine the codes of the travel retail industry.
"This model represents a true partnership between the operator and the airport, and its adaptability over the 12-year term of the agreement will allow for the testing of new brand and product offerings, as well as a number of technologies," says the French group's press release.
Séverine Lanthier, Asia Operations Director and Head of Strategy and Development, said, "This agreement opens up new horizons for our operations in Asia and I am grateful to our teams and partners who have supported us in writing this new chapter.
"I am confident that, through our distinctive profit-sharing model and the commitment of our teams, we will take travel retail and food and beverage services to a whole new level."
Oknha Charles Vann, director of Cambodia Airport Investment Company, added:
"Through our collaboration with Lagardère Travel Retail and HSC Group, we expect to add significant value for frequent travellers to and from Phnom Penh."
According to Lagardère Travel Retail, the expertise and international network that travellers will benefit from will position Cambodia as a key player on the Asian regional scene.
Lagardère Travel Retail also mentioned that this agreement marks the continued expansion of its global presence and its commitment to developing multiple business activities. "It also creates a seamless experience for passengers and maximises operational and commercial value for owners and brands".
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