Duty Free Americas Creates New Brand For Lucrative $9.5 Billion Mega-Terminal At JFK Airport
Rendering of DFA's Love Local concept showing the Skyline brand.
Duty Free Americas (DFA)—which runs 250 travel retail stores globally, most of them in the United States—will operate the duty-free program in John F. Kennedy International Airport's (JFK) New Terminal One (NTO) when it opens in phases starting in 2026.
The Port Authority of New York and New Jersey (PANYNJ); the financial and construction consortium the New Terminal One; and URW Airports, part of shopping center operator Unibail-Rodamco-Westfield, selected DFA as the exclusive duty-free operator for the privately funded, $9.5 billion terminal which will be fully finished by 2030.
The 2.6 million square foot terminal merges the spaces of the current T1, T2, and former T3 to create a mega-terminal anchoring the south side of JFK. It will be the same size as LaGuardia Airport's two terminals combined, and will double the number of existing gates for wide-body aircraft, with 22 of the 23 new ones designed for larger aircraft
Crucially, from a retail perspective, NTO will be an all-international terminal, which means that spend per passenger is likely to be much higher than average. With this in mind, DFA has pulled out all the stops by creating a bespoke brand, Skyline Duty Free, claimed to be a 'first-of-its-kind retail experience.'
Duty Free Americas CEO, Jerome Falic, commented: 'As JFK's largest terminal, New Terminal One is set to redefine international travel to and from New York. We are especially proud to introduce Skyline, a distinctive brand for the terminal. Our stores will elevate the shopping experience, providing international travelers with an unmatched selection of premium products in a dynamic and engaging setting.'
URW's U.S. chief operating officer Dominic Lowe added: 'This project is a once-in-a-generation opportunity to redefine travel retail. Our vision is to set a new standard in the U.S. with our commercial program.'
DFA therefore has a lot resting on its shoulders. It's operation will span almost 20,000 square feet and anchor the terminal's commercial district called World's Runway. The total commercial space at NTO, including all retail, dining and lounge space, will be 300,000 square feet.
Like other new terminals at JFK, the shops will be inspired by New York City's skyline and landmarks, as well as more familiar international brands. The flagship Skyline Duty Free store will be multi-level and feature architecture in line with that of its enclosure, with another four duty-free units elsewhere in the terminal.
Referring to DFA's planned retail offer, New Terminal One consortium CEO, Jennifer Aument, said: 'This investment reflects the strength of the value proposition and reinforces our position as the terminal of choice for international airlines serving JFK Airport.' The consortium is led by Ferrovial, JLC Infrastructure, Ullico, and Carlyle, all of whom will be working to achieve a strong mix of carriers.
In a statement, DFA said: 'Experiences are measured through the memory and (we are) confident that Skyline Duty Free will create thoughtful, engaging moments, inspiring curiosity and encouraging repeat customers.'
Once through security, passengers will be welcomed by Love Local and its distinct storefront featuring products from NYC- and Queens-based businesses. Next they will encounter DFA's large Skyline store in a space that URW Airports says will be a shopping destination that 'blends Fifth Avenue elegance and Art Deco flair.'
In front of Skyline will be an experiential center where fashion, art, brand activations, and virtual reality simulators—incorporating cultural, sports and local themes—will allow passengers to indulge in some interactive moments. If done well, these activities will draw them into the duty-free shops. This area will be the heart of NTO's retail offer.
PANYNJ chairman Kevin O'Toole commented: 'As an all-international terminal, NTO plays an important role as the region's front-door to the world. A best-in-class terminal will include an unparalleled retail experience that travelers from around the world expect.'
JFK's New Terminal One will be able to accommodate double-height stores.
Delivering on O'Toole's requirement for an 'unparalleled' retail experience will be a challenge, but DFA's decision to create a new store brand is a good start. Further promises include:
More than 1,000 square feet of hand-selected local products will be prominently featured in a rotating assortment through Outside In. DFA is a long-time operator at JFK and already has some partnerships with local vendors and community leaders to get this off the ground.
When finished, JFK Airport hopes to get a 5-star rating from Skytrax (NTO is top center-right).
Also, as part of its contractual commitment to the Airport Concession Disadvantaged Business Enterprise (ACDBE) program—whose future is unclear under the Trump administration's quashing of DEI (diversity, equity, inclusion)—DFA has partnered with local ACDBE partners. It has chosen those with complementary strengths in marketing, community relations, and concessions management and among them are C&E Global Solutions, JDK19 Group, BBJ Concessions, Prevost Consulting Group, and Parkview Global. They will account for 35% of DFA's joint ventures at the terminal.
To further support local businesses, Skyline Duty Free will organize quarterly outreach programs where local vendors can pitch their products, including for seasonal markets and 'sell for the day' events.
Another difference that NTO will bring, is what it is calling a 'cash & carry experience.' Whereas other JFK shops deliver duty-free purchases to the passengers' boarding gates for them to pick up, NTO's customers will be able to take advantage of online click-and-collect and lounge deliveries. DFA said that NTO will be 'the sole airport terminal in the U.S. to offer the benefit of cash and carry.'
NTO is part of PANYNJ's $19 billion transformation of JFK into a modern global gateway. The authority aspires to obtain a Top 5 Skytrax ranking when the terminal is completed and possibly a ranking in the best shopping category which this year went to Qatar's Hamad International airport for the third consecutive year.
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