Avolta secures major retail space at JFK Terminal 6

Switzerland-based global travel retailer Avolta has recently confirmed its contract to manage close to 30,000 square feet of retail space at New York's John F. Kennedy Airport Terminal 6, set to open in early 2026. This extensive 18-year contract was announced in September by JFK Millennium Partners, which is constructing the terminal at a cost exceeding $4 billion through a public-private partnership with the Port Authority of New York and New Jersey. Terminal 6 will occupy the site of the airport's previous terminals 6 and 7, and it has been pledged that a minimum of $840 million in contracts will go to minority and women-owned businesses as part of this initiative. Avolta’s CEO Xavier Rossinyol emphasized that this is the company's largest contract to date in North America, intending to enhance the overall travel experience at one of the busiest airports in the United States. He noted that local business owners will collaborate with Avolta to bring the vision for the terminal's retail space to fruition, thereby expanding Avolta’s leadership in the U.S. travel retail and food and beverage markets. The retailer faces competition from rival companies such as Paradies Lagardère and WH Smith, both of which have been expanding within the U.S. travel market. Despite winning multiple contracts, Avolta's share price fell nearly 10% recently, illustrating that investor sentiment may not be entirely positive, even with the new ventures. On the same day as the announcement of the JFK contract, Avolta reported a new 10-year contract at Manaus Airport in Brazil, which will involve managing four new stores covering over 10,800 square feet. However, the JFK Terminal 6 retail space is almost three times larger and serves a much larger number of passengers, with 62.5 million passengers anticipated in 2023, compared to around 2.8 million at Manaus. Overall, Avolta's contracts across the U.S. travel sector continue to grow, with notable wins secured this year at various other airports, including those in Phoenix, Sacramento, and Salt Lake City. Although the North American segment has experienced relatively weaker growth at 14.3% compared to other regions, it remains the second highest revenue contributor for Avolta, generating $4.5 billion last year, which accounts for 32% of total revenue.