The bidding for Shanghai International Airport Co.,Ltd.'s duty-free shops has concluded, with China Duty-Free Group (CDF) and foreign-owned Dufry securing operations for the two major airport terminals. Sunrise Duty-Free, which previously monopolized duty-free operations at both Shanghai airports, will now exit the scene. Staff at a Sunrise store in Pudong Airport confirmed that outlets remain open under new management, with no immediate changes or promotions announced.
Notably, CDF holds a controlling stake in Sunrise Duty-Free. Reports indicate that during the bidding process, multiple CDF-appointed directors on Sunrise’s board opposed its participation, leading to a failed bid submission. On the bidding day, Sunrise representatives forcibly submitted materials on-site, only for CDF—Sunrise’s parent company—to later file a withdrawal request, resulting in Sunrise’s disqualification and CDF’s win.
Neither CDF nor Sunrise directly addressed these claims. CDF’s investor relations department deferred to official announcements, while Sunrise redirected inquiries to CDF, stating participation decisions lie with legal representatives. Shanghai Airport declined further comment, referring questions to CDF.
**Conflict Over Bidding Rights** As Sunrise’s controlling shareholder, CDF reportedly blocked its subsidiary’s bid. Insiders revealed Sunrise was "barred from participating," prompting plans to appeal to Shanghai Airport’s bidding committee. The dispute escalated on December 6 when Sunrise’s Shanghai board, dominated by CDF-nominated directors, voted against bidding. Despite lacking formal authorization, Sunrise attempted to submit materials on December 9, leading to a standoff with CDF staff until the committee allowed the submission. Sunrise also filed legal complaints accusing CDF of breaching acquisition agreements. Ultimately, CDF submitted a withdrawal request signed by Sunrise’s legal representative, sealing Sunrise’s loss.
**Strategic Shift for CDF?** The bidding divided Shanghai Airport’s duty-free operations into three segments: Dufry won Terminal T1 and Satellite S1 (lower passenger quality but high fixed rent at ¥3,141/sq.m/month), while CDF secured premium zones (T2/S2 and Hongqiao T1). Analysts note CDF’s focus on higher-margin areas could boost efficiency and revenue, as it previously shared only half of Sunrise’s profits.
CDF’s move aligns with its recent financial struggles. Q3 2024 results showed revenue down 7.34% YoY to ¥39.86B and net profit falling 22.13% to ¥3.05B. Annual 2024 figures further declined (revenue: ¥56.47B, -16.38%; net profit: ¥4.27B, -36.44%), a far cry from its 2021 peak (revenue: ¥67.68B, profit: ¥9.65B).
**Sunrise’s Legacy and Future** Sunrise once dominated China’s duty-free market, securing exclusive rights at Beijing, Shanghai Pudong, and Hongqiao airports since 1999. After equity changes—including a 2018 buyout by CDF (51% stake for ¥1.51B)—its independence waned. Now, with Shanghai lost, Sunrise pins hopes on Beijing Capital Airport’s ongoing bidding (deadline: December 19, 2025). A loss there would strip Sunrise of all physical airport stores.
Exploring alternatives, Sunrise is testing a standalone e-commerce membership program ("CDF-Sunrise") unrelated to CDF’s system, hinting at a potential split. The new tiered program (LV1-LV4) offers discounts to higher-tier users, signaling a pivot toward online sales and private-label promotion—a shift from its two-year integration with CDF’s membership.
As Sunrise charts a new course, industry watchers speculate whether this marks a strategic divergence from its parent company.
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