TOP 10 AIRPORTS: SINGAPORE CHANGI 2 T


Changi Airport reports +2.1% rise in retail revenue, while Lotte begins trading online


In 2019, Changi once again exceeded S$2.8bn in retail sales, while the opening of its Jewel complex and the selection of a new liquor & tobacco operator – after DFS decided to exit the concession – certainly attracted the global industry’s attention, as Andrew Pentol reports.


he awarding of the Singapore Changi core category liquor and tobacco concession to


Korean retailer Lotte Duty Free took many by surprise. DFS Group had held the contract


since 1980 and forged a strong partnership with airport operator Changi Airport Group (CAG), so to say the contract award resembled a changing of the guard would not be an exaggeration. The circumstances leading to the


award were also unusual. DFS agreed a two-year contract extension in 2018, but ultimately went back on the agreement. In May 2019, the retailer agreed a two-month contract extension with CAG, which expired on 8 June 2020. Many expected DFS to participate


in the tender for the 18-store concession it had held for so many years, perhaps in the hope of negotiating more favourable terms, but it wasn’t to be. On 24 October 2019 it was


announced that Lotte would operate the four-terminal L&T concession, spanning more than 8,000sq m of retail space.


New contract award A Changi Airport Spokesperson tells TRBusiness: “This was the first time we awarded a new operator this key concession at Changi. In June 2020, we welcomed Lotte, which started retailing on our iShopChangi.com e-commerce duty free platform. “Its physical stores, which will


open at a later date, will offer over 3,000 tax and duty free wines and spirits.” CAG revealed exclusively to


TRBusiness that DF&TR sales grew by +2.1% to at least S$2.86 billion/$2.07 billion in 2019, enabling it to retain second position in this year’s table, behind Seoul Incheon International


AUGUST 2020


Airport and marginally in front of third-placed Dubai. CAG highlighted the opening


of Jewel Changi Airport (Jewel) as another major retail development. The 10-storey, 135,700sq m Jewel,


boasting more than 280 shops was officially inaugurated on 18 October 2019 by Singapore Prime Minister Lee Hsien Loong. Doors were initially opened to the public in April. The CAG Spokesperson, who


pinpointed perfumes, cosmetics, liquor and tobacco and luxury as the top-selling product categories at the airport in 2019, comments: “Last year, Changi changed perceptions of what an airport could be, with the opening of Jewel garnering international interest and attention. “Envisioned as a marketplace


and urban park, Jewel features play attractions and airport facilities such as early check-in counters and kiosks. All of this is in addition to its towering Rain Vortex and lush Forest Valley.” Chinese Singaporean and


Indonesian passengers were the highest spenders in 2019 at Singapore Changi, which was voted the world’s best airport by Skytrax for a seventh consecutive year. It has since gone on


to retain the award in 2020. “We are humbled to be named


Best Airport by Skytrax for the eighth consecutive year. The affirmation pushes us to continue pursuing new innovative retail experiences and offerings,” the Spokesperson remarks. The Skytrax award is one positive


for Changi Airport this year, amid the Coronavirus (Covid-19) pandemic. With more than 80% of retail


and food and beverage outlets at Changi Airport and Jewel restarting operations as of 3 July 2020, things appear to be looking up.


Gradual flight resumptions As Changi, which handled 68.3 million passengers in 2019, prepares for the gradual resumption of flights, CAG is adapting its retail


“Last year, Changi changed perceptions of what an airport could be, with the opening of Jewel garnering international interest and attention.”


Spokesperson, Changi Airport Group TRBUSINESS 25


Above: The opening of the Jewel Changi Airport complex was a major highlight for Changi Airport Group in 2019.


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