The St. Louis Airport Commission approved a 10-year contract with a joint
venture of the Hudson Group (HG-St. Louis JV) that will dramatically change the
landscape of retail shopping at Lambert-St. Louis International Airport while
increasing revenues. The agreement, which also carries a three-year option,
guarantees Lambert a minimum of $13 million in the first three years of the
contract and $41 million over the full term of the contract. The agreement,
which would begin February 1, 2013, now awaits final approval by St. Louis
Board of Aldermen.
Lambert estimates the Hudson agreement will yield $7.45 million more than
the revenues from the current contract just in the first three years, with an
average minimum annual guarantee (MAG) of $4.3 million. In the last three
years, Lambert received $5.5 million in retail revenue. The Paradies Shops,
which is Lambert’s current retail operator, and HMS Host, also submitted
proposals to Lambert’s Solicitation for Bids.
“Overall, we think we had a great response from all three bidders, including
The Paradies Shops, which has been a great partner at Lambert for two decades,”
said Lambert Director Rhonda Hamm-Niebruegge. “In the end, Hudson developed a
package with the highest revenue guarantees and a competitive retail program
that includes new and refreshing concepts.”
The Hudson team will operate 14 retail locations with proposed national
concepts that include its flagship Hudson store (news, magazines, books,
snacks, technology), Ebony News, Eddie Bauer (clothes and accessories),
Spectacles (sunglasses), Kids Works (educational toys and games) and Bliss
(lotions and spa products), which will make Lambert its first home at an
“Our expert team of designers, merchandisers, marketers, concessions operators and developers canvassed the airport and the City to produce this proposal for innovative concessions at STL. We are proud to say that we have developed for the airport a concessions program that will exceed the core convenience needs of Lambert-St. Louis International Airport’s employees and travelers,” said Joe DiDomizio, President & CEO of Hudson Group. “It will also offer a wide selection of fun, compelling and up-to-date retail brands and concepts -- local, regional, national and international names that will appeal both to residents and visitors to St. Louis.”
The proposed concepts also feature a focus on St. Louis. The Discover St. Louis boutique will feature
souvenirs and mementos from all the leading cultural institutions in the city,
including all the attractions at the Jefferson National Parks (including The
Gateway Arch), Peabody Opera, St. Louis Art Museum, as well as entertainment
attractions like the St. Louis Zoo, St. Louis Blues, and Washington University
of St. Louis. St. Louis Sports store
will promote the great pro and college teams in the region selling licensed
merchandise and mementos.
For more details on the Lambert News Release, click here.
HG-St. Louis JV is a joint venture comprised of Hudson Group (HG) Retail,
LLC; Final Phase Marketing, Inc., based in St. Louis; OHM Concession Group, LLC
of St. Ann, Missouri; and Newburns Management Group, LLC, an experienced ACDBE
operator. For more information about Hudson Group, log onto www.hudsongroup.com.
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