Undergoing Revamp, Sofia Airport Expands Retail Choices Significantly
Ambitions are running high in Sofia, Bulgaria's capital. This small EU country, with a population under seven million, is on track to close the year with a GDP growth of 2.4%, significantly surpassing the EU's weak 0.9%. The European Commission predictions for the next two years indicate a faster pace that will be well above the EU average.
Aviation plays a significant role, and Sofia International Airport has unveiled IPA's design plans for a new terminal with a massive 150% expansion in retail and food and beverage (F&B) space.
The Aviation-Event 2024 SOF conference, held in Sofia last month, was the first international aviation gathering on a large scale in Bulgaria. SOF Connect, the operator of Sofia International, presented plans for the new T3, which will be integrated into the existing T2.
When asked about the commercial aspect of the move, SOF Connect's CEO, Jesus Caballero, explained that the retail and F&B space would increase from the current 43,000 square feet to roughly 107,600 square feet. Caballero shared that therefurbishment of T2 would happen while building T3, with the new retail area being part of the ongoing commercial operations.
Sofia welcomes Avolta and SSP
In April 2022, the bid to manage T2's shopping space was won by Swiss travel retailer Avolta, securing an 8.5-year lease for 13 stores, 11 being duty-free and 2 duty-paid. Avolta also has a presence at Bulgaria's Burgas and Varna airports.
An F&B concession at Sofia Airport was granted to SSP this summer, marking their entrance into the Bulgarian market. SSP is now developing a modern food court, with globally recognized names like Starbucks, Burger King, and TGI Fridays set to join in early 2025. Additionally, SSP's own brands (such as Levito - Pizza Pasta, Negroni, Upper Crust, and Soul & Grain) will be present, along with local concepts like Meshana - Taste of Bulgaria, and Bar 09-27.
A new Avolta duty-free shop, the largest in Bulgaria, covering about 19,000 square feet, opened in April. All passengers must pass through the unit to reach their gates. Construction of specialty shops and boutiques is underway to complement this primary commercial asset.
"We have premium brands expressing interest in the new T3 spaces due to high-spending passengers on routes to Milan, for instance, who are under-served at present," Caballero mentioned, citing SOF Connect data.
Elevating Sofia in Eastern Europe
Caballero's goal is to turn Sofia International into Europe's first 5-star regional hub once T3 is completed by 2031. Currently, based on Skytrax rankings, only seven such 5-star regional gateways exist internationally, with only one in the US: Houston's William P. Hobby Airport.
SOF Connect, led by main shareholder infrastructure investor Meridiam (with 100% of the share capital), has managed Sofia Airport since April 2021 under a 35-year contract. Meridiam has an existing portfolio of airports, including LaGuardia (Terminal B) in New York, Queen Alia International in Jordan, and Ivato and Nosy Bé in Madagascar.
Meridiam aims to boost revenue growth by developing and modernizing Bulgaria's largest airport with a retail focus. The company has committed €624 million ($650 million) to invest into the airport over the contract period, expected to stimulate the Bulgarian economy and attract more tourists, backed by government agencies.
The conference, attended by over 200 delegates from more than 20 airports and 15 airlines including Fraport Bulgaria, Munich International, and Lufthansa, signaled that the project was proceeding smoothly. Caballero confirmed that the terminal would contribute to the country's competitiveness, with the capacity to cater to 20 million passengers annually, making it the largest in the Balkans.
Bulgaria's Minister of Transport and Communications Krassimira Stoyanova, speaking at Aviation-Event 2024 SOF, emphasized: "The construction of the new T3 is a significant step towards a modern Sofia Airport that we, as a country and society, aspire and deserve."
- The winning bid for managing T2's shopping space, which includes duty-free and duty-paid stores, was awarded to Jesus Caballero's company, Avolta, last April.
- SSP, a renowned food and beverage concessionaire, has entered the Bulgarian market by securing an F&B concession at Sofia Airport, and plans to open a modern food court with globally recognized brands.
- Passengers at the airport now have access to Avolta's largest duty-free shop in Bulgaria, covering around 19,000 square feet, which they must pass through to reach their gates.
- Ryanair, a popular low-cost airline, announced that it will increase its frequency of flights from Sofia to various European destinations, contributing to the airport's retail growth and boosting tourist attraction.
