BUSINESS

China’s Airport Retail Gets Overhaul as Sunrise Drops Out, State Giants Step In

Published: Dec. 27, 2025 2:12 a.m. GMT+8

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A duty-free shop operated by CDF at Beijing Capital International Airport. Photo: VCG

State-owned giants China Duty Free Group Co. Ltd. (CDF) and Wangfujing Group Co. Ltd. have won competitive bids to run duty-free shops at Beijing Capital International Airport, marking a significant shake-up in China’s airport retail landscape and unseating longtime operator Sunrise Duty Free Shanghai Co. Ltd.

The result, announced Thursday, granted CDF — a wholly owned subsidiary of China Tourism Group Duty Free Corp. Ltd. (CTG Duty Free) — the contract for Terminal 3, with 10,646.7 square meters of retail space to be operated by the company. The terms include a first-year minimum guaranteed fee of 480 million yuan ($68 million) and a 5% sales commission.

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China Duty Free Group won the Terminal 3 contract at Beijing Capital International Airport with a first-year fee of 480 million yuan; Wangfujing Group won Terminal 2 with a 113 million yuan fee.
Both concessions last up to eight years, ending longtime operator Sunrise’s presence at Beijing and Shanghai airports.
In 2024, CTG Duty Free’s net profit dropped 22.1% and Wangfujing’s by 62.1%, but their shares rose after the contract awards.

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Who’s Who

China Duty Free Group Co. Ltd.: China Duty Free Group Co. Ltd. (CDF) is a state-owned enterprise and a wholly-owned subsidiary of China Tourism Group Duty Free Corp. Ltd. (CTG Duty Free). It recently won the competitive bid to operate duty-free shops at Terminal 3 of Beijing Capital International Airport, spanning 10,646.7 square meters. CDF also secured duty-free rights at Shanghai's Pudong and Hongqiao airports.

Wangfujing Group Co. Ltd.: Wangfujing Group Co. Ltd., a state-owned legacy department store operator, has secured the contract to run duty-free operations in Terminal 2 at Beijing Capital International Airport. This covers 3,566.3 square meters of retail space, with a first-year minimum guaranteed fee of 113 million yuan and a 5% sales commission. The concession runs until February 10, 2034. The company's revenue and profit have faced declines in 2024 and the first nine months.

Sunrise Duty Free Shanghai Co. Ltd.: Sunrise Duty Free Shanghai Co. Ltd. was a dominant player in airport retail, operating duty-free shops at Beijing Capital International Airport and Shanghai's two busiest aviation hubs. However, its presence at these airports has ended due to a strategic decision by its parent company, CTG Duty Free, to consolidate operations under the CDF brand. Sunrise was barred from participating in recent bids.

China Tourism Group Duty Free Corp. Ltd.: China Tourism Group Duty Free Corp. Ltd. (CTG Duty Free) is the parent company of China Duty Free Group Co. Ltd. (CDF), which recently won a contract to run duty-free shops at Beijing Capital International Airport's Terminal 3. CTG Duty Free's financial performance has been struggling, with revenue down 7.3% and net profit down 22.1% in the first nine months. The company also reported declining revenue and profit in 2024 due to weakness in its offshore duty-free operations in Hainan.

Sunrise Duty Free: Sunrise Duty Free Shanghai Co. Ltd., once a dominant player in China's airport retail, has been unseated as the operator of duty-free shops at Beijing Capital International Airport. Its parent company, CTG Duty Free, made a strategic decision to consolidate operations under the CDF brand, effectively sidelining Sunrise from future bids. This marks the end of Sunrise's presence at China's two busiest aviation hubs, Beijing and Shanghai.

Avolta AG: Avolta AG, formerly Dufry AG, is a Swiss retailer. It secured duty-free rights at Shanghai's Pudong and Hongqiao airports alongside CDF. This move displaced Sunrise from those locations, marking a significant shift in the airport retail landscape.

Dufry AG: Avolta AG, previously known as Dufry AG, is a Swiss retailer that recently secured duty-free rights at Shanghai's Pudong and Hongqiao airports. They partnered with CDF to win these rights, displacing another operator.

AI generated, for reference only