SOUTH KOREA REPORT: LOTTE DUTY FREE
constructing a 5,000sq m retail extension in the tower.” Already included in the original plans for Lotte World Tower, the current expansion scheme will increase the duty free store’s retail space by 63% when completed. “Today we have 8,500sq m of duty
free shopping space in Lotte World Tower shopping centre,” Kim said. “We will finish the extension
by the end of June; then our Lotte World Tower duty free store will be 13,500sq m in area.” Lotte will add 2,500sq m of retail
space on both the eighth and ninth floor levels by extending the duty free shop into the tower building.
Largest DF store in Asia On completion, the Lotte World Tower store will become the largest duty free store in Asia, with the exception of the China Duty Free Sanya store on Hainan Island, which caters to domestic duty free customers only. Kim noted that the duty free shop’s
interior design will be different in the Lotte World Tower building and Lotte World Tower shopping centre sections of the store. “In the extra space we will
have some cosmetics brands and traditional South Korean items. Cosmetics will be on the ninth floor. Perfume and cosmetics additions will be new brands, mostly Korean brands plus some cosmetics testing and ‘experience’ zones. Aside from the Lotte World Tower,
and the Sogong Flagship, another of Lotte’s most important – and
Heinemann hits $4bn in group turnover in 2016
seemingly best performing – stores is the COEX downtown duty free shop in Samsong district, where sales grew 43% for the second year running in 2016. As has been the case with Lotte’s
Fighting talk from TFWA President
China committed to domestic tourism drive
other stores, the increased numbers of group tours visiting the COEX store after the Lotte World Tower shop closed were an important factor in lifting overall revenue. Lotte’s COEX shop, which
Also inside
is situated in a large shopping, hotel and commercial complex, has a strong focus on perfume and cosmetics. This category accounts for
This content is for subscribers only. To receive a full digital copy of the May issue,
more than 50% of revenue at the COEX store, which has fewer boutiques than the operator’s other downtown complexes. The prominent cosmetics display
area occupies over 3,000sq m and includes a wide selection of South Korean brands that are preferred by Chinese customers. Popular attractions in the COEX
Lotte’s sales reach almost $1bn at Incheon Airport
Duty free sales reached almost $1bn at Incheon International Airport in 2016 where Lotte holds four concessions awarded in 2015. The five-year concessions include
the operation of the following stores: perfume and cosmetics, liquor and tobacco, the entire Incheon Airport concourse and the main terminal central departure area fashion concession that includes the Louis Vuitton boutique. Lotte is the exclusive operator in
MAY 2017
downtown duty free shop to be tendered in Seoul and is expected to attract considerable interest. “There will be bidding for the
COEX shop license in June or July,” Kim said. “We want to keep our COEX shop; we don’t want to lose it.” «
plus 12 monthly print editions and the critically acclaimed TRBusiness Top 10 International Operators Report, please visit
www.trbusiness.com/subscriptions
in the central boutique area. These include: Louis Vuitton, Prada, Cartier, Gucci, Bulgari, Omega, YSL, Bottega Veneta, Burberry, Salvatore Ferragamo, Tumi, Tiffany and Tumi in the central boutique area. Elsewhere in Incheon Airport, Lotte
operates all 19 duty free shops in the Incheon Airport concourse terminal, which is connected to the main terminal by a shuttle rail service. Perfume and cosmetics is the largest
Incheon Airport of the 13 luxury brands
selling category in the concourse, followed by liquor and tobacco.
One of Lotte’s duty free stores at Incheon International Airport.
TRBUSINESS 103
May 2017 20
YEARS 1997-2017
TRBusiness Annual South Korea Report
Fashion boutiques account for 15% of Lotte’s total sales.
Top Asia Pacific operators drive global growth
“There will be bidding for the COEX shop license in June or July…We want to keep our COEX shop; we don’t want to lose it.”
Exclusive: Coty details $12.5bn P&G acquisition
Kim Te Ho, Lotte Duty Free. Hong Seok Ho Shinsegae shoots for $1bn sales target in 2017... p115
LAGARDÈRE IN ROME | ACI CONFERENCES’ REVIEW | LOTTE DUTY FREE | DFS GROUP SHILLA | SUNRISE | EVER RICH | CHANGI AIRPORT | SINGAPORE CRUISE CENTRE | CHINA DUTY FREE | INCHEON AIRPORT | HDC SHILLA | HANWHA GALLERIA | SM DUTY FREE WILLIAM GRANT & SONS | PERNOD RICARD | BROWN-FORMAN | BEAM SUNTORY | BACARDI BEAUTY IN ASIA REPORT | COTY’S PHILIPPE MARGUERITTE | PEOPLE NEWS | NOW & THEN
store include a ‘Get It Beauty’ outlet, designed as a pop up shop and based on a popular South Korean TV show of the same name. In addition to Chinese group
tours, the COEX shop also serves South Korean FIT travellers who live in the popular Gangnam area. However Lotte’s license will expire later this year. The concession will be the next
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 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180 |
Page 181 |
Page 182 |
Page 183 |
Page 184 |
Page 185 |
Page 186
