All passenger terminals at Los Angeles International Airport will receive new duty free concessions under a 10-year contract with DFS Group L.P.

The city Board of Airport Commissioners voted Aug. 6 to approve the agreement with DFS Group to develop and operate duty-free and duty-paid merchandise concessions at LAX, with three additional one-year options.

Airport officials estimate that Los Angeles World Airports, the city agency that operates LAX, will receive $100 million for the first year, and an average of over $150 million annually over the initial 10-year term of the contract. DFS will be required to invest at least $25 million in initial improvements and $17 million in mid-term refurbishment improvements.

Under the contract, the company will be required to design, construct and operate all duty-free merchandise concessions throughout LAX, including 13 stores consisting of approximately 37,600 square feet, airport officials said. The new Tom Bradley International Terminal currently under construction is expected to have a single 14,000-square foot store and a 9,900-square foot multi-unit in the core area of the terminal.

Concessions at Terminal 2 will cover about 4,800 square feet, and Terminals 3, 4, 5, 6 and 7 will each have one duty free shop at an average 1,160 square feet. DFS also will have duty-paid retail shops in Terminals 1 and 8 under the agreement until airlines schedule international departing flights from those terminals.

Merchandise will include spirits and wine, fragrances, cosmetics, and tobacco products. In addition, DFS will offer electronics and fashion-branded boutiques, as well as high-end, specialty duty-free stores offering international brand-name merchandise.