Ontario Airport Retail Shops to Undergo Major Remodel
ONTARIO, Calif. – The Ontario International Airport Authority (OIAA) Commission unanimously approved a multi-year agreement to upgrade retail concessions at Ontario International Airport (ONT), greatly improving shopping options for air travelers and airport guests, and generating significant new revenues for the airport.
The eight-year concession lease agreement with Hudson Group and HG ONT Retailers JV includes a capital investment of at least $2.4 million by the concessionaire to rebrand and remodel its retail operations, in addition to rent payments calculated as a percentage of gross sales.
For example, the concessionaire will pay the OIAA 12 percent on sales in its specialty stores and electronics category; 16 percent on sales in the news and gifts category up to $10 million per year, increasing to 18 percent on sales greater than $10 million per year; and 12 percent on sales in the duty-free category up to $10 million per year, rising to 18 percent on sales of more than $10 million per year.
With the new concepts and rent payment structure, OIAA anticipates rent payments to increase by as much as 70 percent over the term of the new agreement. In the first year after the retail improvements are completed, the concessionaire expects to generate an additional $500,000 in rent to the airport authority.
“Since the Ontario International Airport Authority assumed control of our airport last year, the Commission and staff have worked tirelessly to improve the customer experience at the airport, and an important aspect of that experience is the retail offerings available to our passengers,” said OIAA Commission President and Ontario Mayor Pro-tem President Alan D. Wapner. “With new domestic and international air service, more ground transportation options and the coming remodel of airport concessions, our airport is now a gateway befitting the Southern California region.”
Following the remodel, the retail concessions will include brands popular with business travelers such as Hudson Group’s flagship brands Hudson, Tech on the Go, and Ink by Hudson, as well as Daily News, Ontario Provisions, and Cali Market.
About Ontario International Airport (ONT)
Ontario International Airport (airport code: ONT) is located in the Inland Empire, approximately 35 miles east of downtown Los Angeles in the center of Southern California. It is a medium-hub, full-service airport with nonstop commercial jet service to 19 major airports in the U.S. and and Mexico, and connecting service to many domestic and international destinations. There are approximately 63 daily departures offered by major eight air carriers. More information is available at www.flyOntario.com. Follow ONT on Twitter at Twitter.com/ @flyONTairport or by liking ONT on Facebook at Facebook.com/OntarioOIAA.
About the Ontario International Airport Authority
The OIAA was formed in August 2012 by a Joint Powers Agreement between the City of Ontario and the County of San Bernardino to provide overall direction for the management, operations, development and marketing of ONT for the benefit of the Southern California economy and the residents of the airport’s four-county catchment area. OIAA Commissioners are Ontario Mayor Pro-Tem Alan D. Wapner (President), Retired Riverside Mayor Ronald O. Loveridge (Vice President), Ontario Council Member Jim W. Bowman (Commissioner), and San Bernardino County Supervisor Curt Hagman (Commissioner).
About HG ONT Retailers JV
HG ONT Retailers JV is a joint-venture of New Jersey-based Hudson Group, one of the largest travel retailers in North America, which operates 975 Hudson, Hudson News, Hudson Booksellers, cafes, specialty retail and duty free shops in 87 airports and transportation terminals in the United States and Canada, including ONT.