Firm chosen to boost airport retail sales

An Atlanta company will develop eight new retail shops at Spokane’s airport, officials announced Wednesday.

The company chosen, The Paradies Shops, has said it expects the stores will more than double airport retail sales during 2006, its first year of operation.

Airport officials said they chose privately held Paradies because of its store design concepts, its strong financial track record and a partnership with four local companies who will sell products inside the new shops.

The contract starts January 2006 and runs for 12 years.

Two companies bid on the contract; the losing bid came from New Jersey-based Hudson Group.

“We want people to feel they’re really in a Spokane store when they visit our shops,” said Bruce Feuer, vice president of business development for Paradies Shops, during Wednesday’s airport board meeting.

The company will use the existing retail space inside the main rotunda when it takes over on Jan. 1. Remodeling in the main terminal and C concourse will continue through September 2006, said airport spokesman Todd Woodard.

Following remodeling, Paradies said it would have five shops inside the main terminal and three in the C concourse.

The retail contract awarded this month will be followed next month by a separate decision on new food and beverage service at the Spokane airport.

Airport officials this year said they wanted a major physical makeover of parts of the airport, along with new and better food and retail shops.

The current retail operator, Delaware North Corp., is one of three bidders for the new food and beverage concession.

Delaware North now operates just one retail shop in the main terminal rotunda. That shop, plus two smaller combination retail-food shops in the C Concourse, will generate sales of about $2.1 million this year, said the company’s local General Manager Scott Welding.

With its eight stores, Paradies expects 2006 retail revenue of around $4.8 million, said Feuer.

The more passengers spend on magazines, gifts and candy inside those shops, the more money the airport gets. The contract with Paradies Shops calls for the airport to get roughly 11 percent of all retail sales, said Judy Gifford, director of airport contracts.

Once finished with the expansion, Paradies will have 46 airport workers, said Feuer. Current operator Delaware North has about seven retail workers, said Welding.

Feuer said starting wages will be $10 an hour, not counting benefits. “Our specialty is customer service,” he said, “but we’re also known for treating our workers very well.”

Each employee working 20 or more hours a week will receive full benefits, added Feuer.

The company expects to spend $2.2 million to build out the eight shops. The airport is adding another $6 million in structural improvements across the airport, including the cost of relocating the security checkpoint.

Feuer said he’s arranged deals with four Spokane retail vendors whose products will be sold at the new airport shops. They are: Auntie’s Bookstore, gift shop Simply Northwest, Craven’s Coffee and the Daily Grind, a food and beverage provider. The four local companies will receive revenue from Paradies based on total airport sales.

Of those, only Auntie’s and Simply Northwest will have separate brand-name shops, located in the main rotunda, although both will be run by Paradies, Feuer noted.

The other Spokane firms, Craven’s Coffee and the Daily Grind, will have items for sale inside airport retail shops, he said.