NEWS ROUND-UP Incheon expects $2bn duty free sales again in 2017


Incheon International Airport expects annual duty free sales to reach $2bn once again in 2017 – following the complete remodelling of its 2,753sq m luxury boutique street, Airstar Avenue, at the central area of Terminal 1. The airport also expects to open new


Terminal 2 shops at the end of 2017, following a long and highly controversial tender process. The remodelled area which occupies


approximately 16% of the airport’s duty free concession space (17,074sq m), includes 25 top luxury boutiques: Balenciaga, Bally, Bottega Veneta, Burberry, Bvlgari, Cartier, Celine, Coach, Fendi, Ferragamo, Gucci, Longchamp, Louis Vuitton, Marc Jacobs, Miu Miu, Montblanc, Moncler, Omega, Prada, Rolex, Saint Laurent, Tiffany, Tod’s, Tory Burch and Tumi. The Saint Laurent, Balenciaga and


Moncler stores were the most recent additions to the revamped shopping street.


passengers’ expectations, and aim to hit US$2bn sales once more. “ Turning to Terminal 2, he added:


“Incheon Airport is currently putting its utmost efforts to successfully open duty free shops in Terminal 2 by the end of 2017. “Along with T1 duty free, we will do our


Bum-Ho Kim, IIAC Executive Director of Commercial Marketing commented: “We are pleased to announce the completion of the main terminal’s renovation. “Last year, while the area was


partially being revamped, the central boutique managed to deliver robust sales of US$224m. “This sales amount covers approximately


11% of the total annual sales (US$2bn). As we have now completed the renewal process successfully, we are expecting to provide efficient customer experiences beyond


best to create a place of which can deliver unforgettable, delightful airport shopping experiences and satisfaction for the passengers visiting our airport.” As reported by TRBusiness earlier this


year, Lotte Duty Free walked away with the liquor & tobacco concession contract – awarded in May of this year – while Shilla Duty Free took perfume & cosmetics, while the terminal’s fashion tender was rebid. Meanwhile the three small and medium


enterprise (SME) contracts will be operated by SM Duty Free (DF4), Entas Duty Free (DF5) and CityPlus (DF6), according to an announcement from the Korea Customs Service (KCS).


m1nd-set predicts big post-Brexit Duty Free gains


Swiss research company m1nd-set is predicting that the duty free business will see strong sales gains ‘across Europe’ once the UK completes its Brexit departure from the European Union (EU), irrespective of whether it is a soft or hard exit. It says the ultimate result will remain


highly positive for the UK, both short and long-term. However, traffic between the UK and EU in a hard Brexit is expected to be up to 6% lower compared to a ‘soft Brexit’. By 2035, m1nd-set also expects total UK


air travel to be 45% higher than it was in 2015 and even higher at more than 55% in the event of a soft Brexit. M1nd-set owner and CEO Peter Mohn


says these findings draw on data from the company’s Business Intelligence Service. This covers shopper behaviour and


what he describes as ‘the industry’s most accurate air traffic forecasting tool’ working with IATA and ARC’s ‘Direct Data Service’


(DDS) database. The methodology is based on the net duty


free market gain due to Brexit, by measuring passenger movements for every single flight to and from around 1,500 airports. He said: “The analysis further identifies


the increased percentage of passengers who would benefit from duty free purchases. “This ‘net gain’ for the UK is clearly the


greatest with over 54% more passengers qualifying for duty free purchases on UK-EU routes.” M1nd-set says Ireland also stands to


see strong gains with eligible duty free purchasers coming in at just below the 40% net gain mark. “Interestingly, five out of the top 10


countries that will see the most positive impact are from Central and Eastern Europe: Slovakia, Poland, Lithuania, Bulgaria and Slovenia. Malta, Cyprus and Spain – which all have high passenger movements with the UK – are also among the top ten countries that will see the biggest potential gains.” He claims this analysis is ‘particularly


beneficial to retailers’ as it demonstrates the net gain on an individual airport basis. Meanwhile, where some UK airports


have most, if not all flight movements with EU countries, the impact on the number of eligible passengers is even more positive. For more on Business 1ntelligence Service reports


from m1nd-set, call +41 21 925 5025 or email info@ m1nd-set.com.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64