Avolta, the Swiss-based global leader in airport duty free shops (Fortune 500 Europe No. 274) best known in the U.S. for its Hudson stores, on Wednesday announced it was awarded the first duty-free contract for an international operator in mainland China in 26 years, giving it the right to open stores in Shanghai’s Pudong International Airport, the 8th largest in the world.
Under the terms of the deal, Avolta, which operates over 5,000 stores in over 1,000 locations worldwide, will set up 43 stores and restaurants across its duty free, duty paid, and food and beverage categories in the Shanghai airport, covering over 85,000 sq ft (8,000 m2). The company did not disclose the size of the deal in financial terms.
The Chinese government, which has yet to comment on the deal, has been courting foreign retail companies in recent years. At a November conference, Vice Commerce Minister Sheng Qiuping invited foreign groups to invest in Chinese retail to “strengthen confidence in long-term growth.” China has long been trying to shepherd its economy from one that is export- and production-based to one that is more consumption-based.
Avolta CEO Xavier Rossinyol, a Catalan-Spanish industry veteran who has led the company since 2021, attributed the win to his company playing the long game in China.
