JFK Terminal 4 is preparing a new duty-free offering led by Aer Rianta and International Shops.
Royal Schiphol Group
Irish travel retailer, Aer Rianta International (ARI) has made a historic retail return to Terminal 4 at John F. Kennedy Airport (JFK) after more than a decade by winning duty-free and exclusive retail concessions at Delta Hub and New York Gateway’s busiest terminal.
T4’s operator, JFK International Air Terminal (JFKIAT), a company of Dutch airport operator Royal Schiphol Group, today announced the award to JFK T4 Retail Partners LLC, a venture between ARI and Queens-based International Shops, as well as local and small enterprise partners.
incumbent The retailer, LVMH-owned DFS, told me in early March that it was not bidding for a new T4 contract as it implemented a changing global travel retail layoff strategy. Recently announced departures include Hawaii and Hong Kong and Macau.
In New York, JFKIAT is in the midst of a massive revamp and expansion at a cost of $1.5 billion, called its North Star Vision. The Food and Beverage (F&B) component is already underway and the core duty-free offer will be revamped in phases once the ARI and International Shops are fully familiarized with the operations. They took over the existing DFS store footprint from April 1.
Increasing the identity of New York
Commenting on the retailer switch, JFK’s landlord, the Port Authority of New York and New Jersey, said this latest retail contract “continues its long-term goal of creating a distinctive place in New York – a key component in the Port Authority’s transformation of JFK Airport. This is being seen from Terminal 8, operated by American Airlines, to JFK Estates, where a $125M commercial redevelopment (60 new shopping and dining options will be inaugurated on April 21), and The new Terminal One, now under construction.
At T4, ARI CEO Ray Hernan commented that in partnership with International Shops, the retailer will “bring to life its customer-first philosophy and activation-based retail model in the United States.” International Shops has long-standing retail relationships at JFK, and co-CEO Scott Halpern said: “Partnering with ARI allows us to combine global expertise with local knowledge, ensuring that Terminal 4 delivers an experience worthy of this extraordinary city.”
Local enterprises, including many from Queens, include: Bird Retail Group, Crescent Consulting, CSQ Enterprises, M&R Concessions, Neighbors Tavern (one of the oldest operating taverns in America), onsite retailers, and Ben Crump Enterprises (BCE), a company founded by civil rights attorney Ben Crump, which is partnering with the International Shops in Hawaii.
Full-Terminal Revamping
The commercial redevelopment of T4 comprises approximately 80-90 units in total, and a notable change in F&B is the introduction of more competitive, Multi-Retailer Model-Whereas it was previously the domain of travel food retailer SSP. Roel Huynink, CEO of JFKIAT, told me: “Competition is good. SSP is still a strong partner but we are now bringing in more F&B retailers which gives people more choice which is very important for us.”
The redevelopment is being implemented when the terminal is fully operational – quite a challenge considering that T4 can handle 89,000 passengers per day. JFKIAT’s Huynink said: “We are focused on strengthening every aspect of T4’s New York identity. I look forward to what we have in store for our passengers as we reimagine the future of the duty-free and exclusive retail experience.” The new-look Delta Terminal will come on stream in phases as JFKIAT celebrates 25 years of operation there.
