JFK Terminal 4 is preparing for a new duty-free offer led by Aer Rianta and International Shoppes.
Royal Schiphol Group
Irish travel retailer, Aer Rianta International (ARI) has made a historic retail return to Terminal 4 at John F. Kennedy Airport (JFK) after more than a decade by winning the duty-free and specialty retail concessions at the Delta hub—and the busiest terminal at the New York gateway.
T4’s operator, JFK International Air Terminal (JFKIAT), a company of Dutch airport operator Royal Schiphol Group, announced the award today to JFK T4 Retail Partners LLC which is a venture between ARI and Queens-based International Shoppes, plus local and small enterprise partners.
Incumbent retailer, LVMH-owned DFS told me in early March, that it was not bidding for the new T4 contract as it is implementing a swingeing global travel retail retrenchment strategy. Recently announced departures have included Hawaii and Hong Kong and Macau.
In New York, JFKIAT is in the middle of an enormous top-to-toe revamp and expansion at a cost of $1.5 billion, dubbed its North Star vision. The food and beverage component is already underway and the core duty-free offer will be reworked in stages once ARI and International Shoppes are fully acquainted with operations. They took over the existing DFS store footprint from April 1.
Commenting on the retailer switch, JFK’s landlord, the Port Authority of New York and New Jersey, stated that this latest retail contract continues its long-standing goal of “creating a uniquely New York sense-of-place—a key component in the Port Authority’s transformation of JFK Airport. This is being seen across the JFK estate from American Airlines-operated Terminal 8, where a $125 million commercial redevelopment (with 60 new shopping and dining options being inaugurated on April 21), and the New Terminal One, now under construction.
At T4, ARI’s CEO Ray Hernan, commented that in partnership with International Shoppes, the retailer would bring “a customer-first philosophy and activation-led retail model to life in the United States.” International Shoppes has had long-standing retail relationships at JFK, and co-CEO Scott Halpern, said: “Partnering with ARI allows us to combine global expertise with local knowledge, ensuring Terminal 4 delivers an experience worthy of this extraordinary city.”
Among the local enterprises, including several from Queens, are: Byrd Retail Group, Crescent Consulting, CSQ Enterprises, M&R Concessions, Neir’s Tavern (one of the oldest operating taverns in the U.S.), Onsite Retailers, and Ben Crump Enterprises, a company founded by civil rights attorney Ben Crump which is partnering with International Shoppes in Hawaii.
T4’s commercial redevelopment covers about 80-90 units in total, and in F&B a notable change has been the introduction of a more competitive, multi-retailer model—whereas it had previously been the domain of travel food retailer SSP. Roel Huinink, CEO of JFKIAT, told me: “Competition is good. SSP is still a strong partner but we are now bringing in more F&B retailers that give people more choice which is very important to us.”
The redevelopment is being executed while the terminal remains fully operational – quite a challenge given that T4 can process 89,000 passengers per day. JFKIAT’s Huinink said: “We are focused on strengthening every facet of T4’s New York identity. I look forward to what we have in store for our passengers as we reimagine the future of the duty-free and specialty retail experience.” The new-look Delta terminal will come on-stream in phases just as JFKIAT celebrates 25 years of operating there.
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