Only two shops per franchise at Ben Gurion 2000

The cosmetics franchisee will not be allowed to operate the electronics franchise.

No franchisee may have rights to more than two shops under the duty-free franchises for Ben Gurion 2000. In contrast, Sakal operates stores for electronics, watches, sports goods, toys, fashion, and computers in the present Ben Gurion Airport terminal.

Airports Authority director of commerce and properties Yoram Shapira told "Globes" that the cosmetics franchisee would not be allowed to operate the electronics franchise.

The Airports Authority is publishing five tenders to operate duty-free stores at the Ben Gurion 2000 terminal this week. The terminal cost $1 billion to build. Revenue from duty-free shops is planned to amount to 52% of the Airport Authority's annual revenue, with the rest coming from fees. Over 50 tenders for shops in the new terminal's duty-free hall and in the non-duty-free commercial center will be published altogether.

Duty-free proceeds are estimated at $300-400 million a year. The franchises are for seven years.

The first tender, for a 3,400-sq.m. cosmetics, tobacco, and alcohol shop, is now being published. Several Israeli and international companies are expected to participate. The winner must commit to paying the Airports Authority at least $68 million a year.

The second tender, for an electronics and appliances shop, will be opened on August 11. Israeli electronics retailers, including Shekem Electric, Sakal, Best Buy Marketing Chains, and Traklin Electric, are expected to participate. The tender for the sporting goods shop will be opened on August 25. Sakal, James Richardson, Wertheimer, and Mega Sport are expected to participate.

The tender for the jewelry and diamond shop will be published later. H. Stern Jewelry and Precious Stones, Padani-Royalty, and international companies are expected to participate. Other tenders will be published for a music store, toy store, souvenir shop, gold and silver jeweler, fashion brands, and a tie store.

The Ben Gurion 2000 terminal, scheduled to open in 2004, will have 15,000 sq.m. of duty-free stores. The tenders process will be completed by November. The Airports Authority is simultaneously publishing a tender to chose a branding company for the duty-free project.

Published by Globes [online] - www.globes.co.il - on August 3, 2003

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