Sofia Airport Overhaul Will Greatly Expand Shopping Options

Ambitions are riding high in Bulgaria’s capital Sofia. The small European Union country—with a population of less than seven million—is set to close the year with GDP growth of 2.4%, well ahead of the EU’s anaemic 0.9%. And European Commission forecasts for the next two years show an acceleration that will be well ahead of the EU bloc’s average.

Aviation will play its part and the country’s main airport, Sofia International, has unveiled the design plans by Bulgarian architecture firm IPA for a brand new terminal that will include a huge 150% increase in retail and food and beverage (F&B) space.

At the Aviation-Event 2024 SOF conference held in Sofia last month—the first international aviation gathering to take place in Bulgaria on a large scale—SOF Connect, the operator of Sofia International, presented plans for the new T3, that will be integrated into the existing T2.

Commenting on the move, and specifically the retail element, SOF Connect’s CEO Jesus Caballero, said that the commercial space (retail and F&B) would jump from the current 43,000 square feet to about 107,600.

Caballero told me: “The full investment is complex because we are combining the existing Terminal 2 and the new Terminal 3. We will be refurbishing T2 as we build T3, and the new retail area that we will be opening forms part of the current commercial operation.”

Sofia adds Avolta and SSP

In April 2022, a tender to run the existing T2 shopping space was won by Switzerland-based travel retailer Avolta which landed an eight-and-a-half-year concession to operate a total of 13 stores, 11 of which are duty-free and two duty-paid. Avolta also has retail operations at Bulgaria’s Burgas and Varna airports, serving resorts on the Black Sea.

An F&B concession at Sofia Airport was awarded this summer to SSP marking the food retailer’s debut in the Bulgarian market. The company is now developing a modern food court and among the global names arriving in early 2025 are Starbucks, Burger King, and TGI Fridays. In addition, some of SSP’s own brands such as Levito – Pizza Pasta, Negroni, Upper Crust, and Soul & Grain, plus bespoke concepts like Meshana – Taste of Bulgaria, and Bar 09-27 are slated.

A new Avolta duty-free shop, the largest in Bulgaria, opened earlier this year in April covering almost 19,000 square feet (see lead image above). All passengers must pass through the unit to get to their gates. Caballero said that specialty shop and boutiques were under construction to complement this core commercial asset.

“We have several prestige brands that are interested in the new T3 spaces as we have passenger living in Sofia who are requesting some high-level luxury labels even though they might be flying on low-cost carriers like Ryanair,” he said. SOF Connect data indicate that high-spending passengers on routes to Milan, for example, are potentially under-served at present.

Making Sofia stand out in Eastern Europe

Caballero’s vision is to make Sofia International the first European 5-star regional hub once T3 is completed by 2031. Currently, based on Skytrax rankings, there are only seven such 5-star regional gateways in the world, of which only one is in the United States: Houston’s William P. Hobby Airport.

SOF Connect, whose main shareholder is infrastructure investor Meridiam (with 100% of the share capital), has managed Sofia Airport since April 2021 under a 35-year contract. It has an existing portfolio of airports such as LaGuardia (Terminal B) in New York where it increased its stake to 48% this year; Queen Alia International in Jordan; and Ivato and Nosy Bé in Madagascar.

By expanding and modernizing Bulgaria’s largest airport with a strong retail focus, Meridiam hopes to accelerate revenue growth. On taking over in 2021, the company said it would invest €624 million ($650 million) into the airport over the contract period. This should boost the wider Bulgarian economy and help to attract more tourists, supported by government agencies.

At the conference, attended by more than 200 delegates from over 20 airports and 15 airlines including Fraport Bulgaria, Munich International, and Lufthansa, Caballero said the project was moving forwards well. The CEO commented: “The terminal will contribute to the competitiveness of the country and with capacity for 20 million passengers per year, it will be the largest in the Balkans.”

Krassimira Stoyanova, Bulgaria’s Minister of Transport and Communications, who gave the keynote address at Aviation-Event 2024 SOF, added: “The construction of the new T3 is a step towards a modern Sofia Airport which we, as a country and society, expect and deserve.”