Switzerland-based global travel retailer Avolta has confirmed it will take on close to 30,000 square feet of retail space at New York’s John F. Kennedy Airport Terminal 6 when it opens in early 2026.
The extensive 18-years contract was announced back in September by JFK Millennium Partners (JMP) which is building the 1.2 million square foot Terminal 6 at an estimated cost exceeding $4 billion. The construction, via a public-private partnership with the Port Authority of New York and New Jersey, will eventually occupy the site of the airport’s former terminals 6 and 7 when completed.
As part if its remit, JMP has pledged to work “hand-in-hand” with the local community in the New York borough of Queens, where JFK is located. A minimum of $840 million worth of contracts is also expected to be awarded to minority and women-owned business enterprises with some of that commitment being taken on by the terminal’s retailers.
Today, Avolta’s CEO Xavier Rossinyol said in a statement: “Through this new contract, which is our largest year-to-date in North America, we will redefine the travel experience at one of the busiest airports in the United States, raising the bar for travel retail worldwide.”
He added that some “exceptional local business owners who embraced our vision will bring it to life” and also noted that the project would “expand our leadership” in U.S. travel retail and food and beverage (F&B). Its market rivals—such as Paradies Lagardère, which has recently grown by acquisition, or expansionist WH Smith—might dispute that latter viewpoint given their own momentum with the United States travel channel.
Avolta stock not reacting to Americas gains
On Tuesday, Avolta’s share price fell sharply by almost 10%, despite an announcement the previous day that it had won a new 10-year contract at Manaus Airport, in Brazil—the gateway to the Amazon rainforest. The retailer will run four new stores at the Vinci-operated airport, which will cover more than 10,800 square feet of duty-free and duty-paid space. The stores will serve a market of about 2.8 million passengers annually.
The JFK T6 retail space, including hybrid concepts, is almost three times larger at an airport serving 62.5 million passengers in 2023, and with significantly more international traffic as a proportion. When the new terminal is completed, annual enplanements are expected to reach approximately 4.3 million passengers.
Avolta’s retail companies Hudson and Dufry will be reimagining the retail space it has won and, along with other contract wins in the US travel retail and F&B market, should help strengthen the travel retailer’s market position. Hudson alone will run close to 10,000 square feet of travel convenience and specialty retail in T6 with Dufry taking the rest for the duty-free offer.
So far this year, Avolta has announced retail and F&B contract wins at American airports including Phoenix Sky Harbor, California’s Sacramento International, John Wayne, Pittsburgh International, and Salt Lake City International.
In 2023, North America achieved the weakest growth across Avolta’s global divisions at 14.3%. This compared to 20% for Europe, Middle East and Africa, 32.5% in Latin America, and 84.4% in Asia Pacific. However, North America remains the second strongest regional revenue source, delivering $4.5 billion last year (32% of total revenue), behind EMEA’s $7.1 billion (51% of revenue).
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