"Four compete for retail deal at Fort Lauderdale-Hollywood International Airport"

Thursday, October 19, 2006

Four compete for retail deal at Fort Lauderdale-Hollywood International
Airport
For the first time in more than two decades, four groups of bidders are
vying to bring news and gift shops to Fort Lauderdale-Hollywood
International Airport.
By INA PAIVA CORDLE
The Miami (FL) Herald


Four major concession companies have submitted proposals for Fort
Lauderdale-Hollywood International Airport's news and gift shops, and three
of the bidders have ties to Miami International, in what could be the first
cross-border infiltration of concessionaires.

The bidding, geared to bring new national brands and more variety to Fort
Lauderdale-Hollywood, marks the first time the airport has put its news and
gift contract up for grabs in more than two decades. The contract, which may
be split in two, covers the vast majority of retail shops at the airport.

The groups, each of which has additional minority partners, include:

   . Hudson, a major airport concessionaire that is teaming up with
ex-Sirgany executive Raymond Kayal Jr. and local businessman, lawyer and
former MIA lobbyist Christopher Korge. Together, they have one store at MIA,
and Hudson has four others there. Kayal and Korge also own Newslink, which
separately operates shops at MIA and Boston's Logan International Airport.

   . HMSHost, another large company, which just was awarded a contract to
expand at MIA.

   . AREAS, a Barcelona-based company that operates throughout Europe and
Latin America, has a new food and beverage contract at MIA and wants to make
further inroads in the United States.

   . Paradies, a large concessionaire that has held the Fort
Lauderdale-Hollywood contract since 1984 and is offering a hefty minimum
annual guarantee to stay at all four terminals.

''We're very enthusiastic about the high caliber of the respondents -- this
can only be good for the airport and the people who use our airport,'' said
Fort Lauderdale-Hollywood spokesman Greg Meyer. ``The financials look very
promising.''

Since Atlanta-based Paradies opened as the sole news and gift vendor at the
airport, Fort Lauderdale-Hollywood has undergone tremendous growth, with
passenger traffic nearly quadrupling from 6.4 million passengers in 1984 to
22.4 million in 2005.

During the same period, the nation's airports have transformed into virtual
shopping malls, with nationally branded stores offering a variety of
merchandise.

The four proposals include new concepts that would expand Fort
Lauderdale-Hollywood's retail offerings for travelers.

AREAS

AREAS would bring News Express, a news and sundry kiosk; Broward Beaches
Resortwear, Gifts and Gourmet, a resortwear shop; Pink Iguana, a ladies'
boutique; Blue Wave, which carries beach-themed merchandise; Travel Mate, a
luggage and accessories shop; and Crocs, a shoe, apparel and accessories
store.

AREAS USA's vice president of business development, Eduardo Uribe, said the
company has an international approach that would be adapted to the local
market.

''We are partnering with a U.S. company, [Travel Traders], that brings us
all the knowledge of how to satisfy the needs of the U.S. traveler,'' said
Uribe, who is based in Miami. ``We are a young company here in the U.S.,
nevertheless we are a very experienced company. Given the opportunity, we
will deliver a unique approach to stores and to the retail program at Fort
Lauderdale.''

HMSHOST

HMSHost would offer a variety of newsstand concepts, including Tropical News
Express, Paradise News, Las Olas News, Boca News Connection and Fox News
Channel, in addition to Ron Jon Surf Shop, Destination Fort Lauderdale,
Bijoux Terner, Little Havana to Go and Sunglass Icon.

''We'd love to be at the airport,'' said Michael Jones, Bethesda,
Maryland-based HMSHost's vice president of business development. ``I think
there's tremendous potential.''

PARADIES

Paradies' proposal shows it would expand with Tropical News; Bruce
Rossmeyer's Fort Lauderdale Harley Davidson/Brooks Brothers-Women/A1A Travel
Mart, with Harley-Davidson items, Brooks Brothers' women's collection and
news items; CNBC News; A Day at the Ocean/Ocean View Travelmart/Details,
with beach-themed items, news items and ladies' accessories; Healthy!,
offering healthy snacks; and Island Breeze, featuring Tommy Bahama items.

Gregg Paradies, president and chief executive, declined to comment on the
company's proposal, saying it was ``not appropriate for us to discuss it
during the process.''

HUDSON

Hudson and its partners, under the AMS South Florida name, would operate
Hudson News, CNN Newstand Fort Lauderdale and Newslink Fort Lauderdale, all
news and gift shops; and specialty stores KidsWorks, Discovery Channel
Airport Store, Life is Good, Vera Bradley, Sunglass Hut and Discover Fort
Lauderdale.

''Our team believes there is a great opportunity to improve the amenities
and shopping experience for the customers and passengers at Fort
Lauderdale,'' said Michael Mullaney, senior vice president of business
development for East Rutherford, N.J.-based Hudson Group.

Korge, Newslink's chairman, said his company entered the airport retail
store business three years ago in Boston. The Miami-based company now is
looking to expand to other airports, including Atlanta.

''Airport retail was something that I have a passion for,'' Korge said.
``It's an incredible business.''

A selection committee, composed of Broward County's nine commissioners and
three Broward County staff members, will determine a short list of top
contenders for the stores, hear presentations and make a recommendation to
the commission.

The airport hopes to have an agreement go to the commission for approval in
the spring.

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