ON THE RISE IN SOUTH KOREA: CITY PLUS


City Plus embarks on huge duty free retail expansion


shops in the main terminal west wing antler concourse, which is currently used by local carrier Asiana Airlines. “Business has been good at


Incheon Airport; we have a lot of promotions offering good prices and value,” said Kim Bong Ki, City Plus Co Ltd Duty Free Director for Incheon and Gimpo Airports in an exclusive interview with TRBusiness. South Korean outbound travellers


account for 45% of City Plus’s sales at Incheon Airport, followed by Chinese passengers with a 30% share and Japanese visitors, 15%. “Asiana’s flight gates are near our


City Plus Co Ltd, one of South Korea’s fastest growing SME duty free operators, has embarked on a huge expansion programme in 2017 that involves opening a downtown duty free store in Seoul and two mixed-category shops at Incheon International Airport’s new Terminal 2. David Hayes reports.


Above: City Plus has embarked on a huge duty free expansion.


A


s Incheon International Airport’s Terminal 2 nears completion, City Plus tells


TRBusiness that it is now in the middle of an important expansion phase including the opening of new shops; both at the airport and in downtown Seoul (December). As the company progresses with


shop plans, the ongoing THAAD missile crisis and China’s ban on group tour visits to South Korea, is obviously a concern for City Plus. In an attempt to counter the potential negative impact of the


“Now we are looking for good items for Japanese passengers. We want to have new concepts like a pop- up store in our new Gimpo Airport shop.”


Kim Bong Ki, City Plus Co Ltd Duty Free Director for Incheon and Gimpo Airports


20 TRBUSINESS


political dispute, the retailer is increasing its range of goods that appeal to South Korean and Japanese customers, as passenger numbers for both nationalities in South Korean airports pick up this year. Trading as City Duty Free, City


Plus is a subsidiary of Kwangju- headquartered Top Sola Co Ltd, which specialises in solar energy technology.


Five duty free concessions The company has grown quickly during the past two years and now holds five SME duty free concessions following the recent award of the Incheon T2 DF6 license. City Duty Free also operates


duty free shops in Incheon’s T1 main terminal building, in Seoul Gimpo International Airport and in Incheon’s Seaport Ferry Terminal 2. Incheon Airport, which is City


Plus’s largest operation, accounts for about 40% of the company’s total duty free revenue generated by five


shops, so we have a high number of South Korean customers,” Kim said. City Plus’s five Incheon Airport T1


shops consist of a mixed food and fashion store; a liquor and tobacco outlet; a cosmetics unit and stores for Korean SME products as well as an offer embracing mini in-store branded boutiques. However, Kim revealed changes


ahead as the retailer addresses brand selection in the boutique store. “We are thinking of some new brands as sales are not good in this store. Also, we want to change some brands in our mixed fashion and food store.” Meanwhile, merchandise planning


for City Plus’s T1 west wing antler concourse shops will take account of Asiana Airlines’ move to the T1 east wing when Incheon Airport T2 opens; thereby replacing Korean Air which will move to T2. The T1 east wing will be used by


foreign carriers which will move from the T1 concourse terminal. City Plus is also negotiating


merchandise for its two recently awarded Incheon T2 shops that cover 241sq m in area combined and will sell fashion goods, food and miscellaneous items. The fact that Korean Air will be the


main airline using T2 will ensure that South Korean passengers are core customers using the new terminal’s


JULY 2017


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