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 airport.

“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.