Lagardère Travel Retail & HSC Group Sign 12-year Contract To Manage Retail and Dining Operations At Techo International Airport
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 dining operations at the Techo International Airport in Phnom Penh.
This follows the news we published in January 2024 that the Overseas Cambodian Investment Corporation (OCIC) had selected Lagardère Travel Retail and its local partner HSC Group to manage the duty-free concessions at the new Techo International Airport which is expected to be operational in 2025.
Séverine Lanthier, Asia COO & Chief Strategy and Development Officer, said:
This agreement opens new horizons to our operations in Asia and I am deeply grateful to our teams and partners who support us writing this new chapter. I am convinced that, through our unique profit-sharing model and the dedication of our teams, we will raise the retail and food services for South Asian and international travelers to the next level.
A press release added that for Lagardère Travel Retail this agreement signifies a major milestone in its Asian development as it will operate its 3 business lines (Duty-Free & Fashion, Foodservice and Travel Essentials) in a green field country, and it is its first direct operation in duty-free in Asia as well as being the first-ever profit-sharing model implemented by the group in ASPAC.
Techo International Airport Retail - Lagardère Travel Retail & HSC Group
In total, it means the 34 outlets in Techo International Airport will cover a combined floor space of 6,500 square meters and Lardère Travel Retail will implement an e-commerce strategy and digital immersive experiences, which are aligned with Techo International Airport’s ambitions.
The profit-sharing contract model creates a partnership between the operator and CAIC is the first landlord in the region to implement this model.
Lagardère Travel Retail already operates more than 500 stores throughout Asia, and the travel retailer will "curate the finest international, regional and local brands for the new Phnom Penh international airport. Lagardère Travel Retail added this "marks the ongoing expansion of Lagardère Travel Retail’s global footprint and its commitment to developing multiple business activities, creating seamless experiences for passengers and at the same time maximizing the operational and commercial value delivered to landlords and brands".
The outlets will include:
- Premium Duty-Free Aelia store
- Marché food hall
- Innovative hybrid concepts such as an EL&N café (lifestyle café with pop-ups)
- ‘Le Connoisseur’ - fine dining, liquors, and tobacco.
- Recognised concepts Relay and Discover (operated in partnership with Monument Books)
Oknha Charles Vann, Director of Cambodia Airport Investment Company, explained, “Through our collaboration with Lagardère Travel Retail and HSC Group, we anticipate significant added value for frequent flyers travelling to and from Phnom Penh. The expertise and international network from which travellers will benefit, will position Cambodia as a key player on the Asian regional scene.”
Techo International Airport (TIA) Latest Update
The construction of the USD $1.5 billion Techo International Airport (TIA) first phase entered the final stage and was confirmed to be more than three-quarters complete as of June 16, 2024. The airport covers a total land area of 2,600 hectares, and is located 19 kilometres south of Phnom Penh. It is classified as a 4F airport and is developed in three phases with the airport scheduled to commence operations by February 2025.