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Singapore Myanmar Investco (SMI) subsidiary SMI Retail is to operate duty-free, retail and food and beverage facilities at Yangon International airport (YIA) terminal two from April 1 2016. The retail operator has been awarded a five-year licence, with the option to extend for a further five years.
Comprising 6,725sq m of retail space, SMI will host 43 shop units across the ground, first and second levels in T2, where it is expected to welcome more than triple the amount of international passengers travelling to Yangon. It will also provide a merchandising, management and consultancy service to local distribution partner Royal Golden Sky (RGS) Company Limited for the T2 duty-free retail space. The agreement is for five years and begins on April 1 2016.
RGS has also been appointed exclusive distributor of duty-free merchandise for sale in the airport, including the new terminal. The agreement also begins on April 1 2016 with the renewable contract expiring on March 31 2021.
Meanwhile, the group’s exclusive 10-year supply agreement with DFS, announced last May, has been secured and forms an integral part of SMI’s travel-retail business model. According to the company, both initiatives will augment the group’s market position in the burgeoning travel industry and increase its business presence of consumer-related services in Myanmar.
Operations of the duty-free, retail and food and beverage outlets will commence from March 2016 and be progressively rolled-out over the next few months. In addition, the group has reached agreements with international fashion and lifestyle brands and food and beverage franchises.
SMI president and CEO Mark Bedingham said: “SMI has been able to use the capabilities of its senior executives, many of whom have extensive experience in duty-free, retail and food and beverage management, to make a compelling offer, through our local partners, to YIA and its magnificent new terminal. We have provided them with a unique and exceptional range of duty-free, luxury and lifestyle brands and introduced for the first time some world class food and beverage concepts. This will allow SMI to have full exposure to the expected rapid growth in tourism and business travel.”