TOP 5 ASIA OPERATORS: SHILLA DUTY FREE
May 2017 20
YEARS 1997-2017
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Advances in Hong Kong and Japan position Hotel Shilla for strategic growth
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A series of important regional moves are helping Hotel Shilla cement its global outreach ambitions, as Luke Barras-Hill highlights.
Hong Seok Ho Shinsegae shoots for $1bn sales target in 2017... p115 Also inside T
he Shilla Duty Free Shop, operated by Samsung Group’s Hotel Shilla, took a significant
step in its global expansion plans in November, when it opened its first overseas downtown store in Phuket, Thailand (the retailer has previously opened concessions at Singapore Changi and Macau airports). A partnership between two local
sales from overseas. In April this year, Shilla moved
companies – Gems Gallery and The Mall – covers a 25,000sqm space operating under the joint venture name ‘GMS Duty Free’, however the store façade carries The Shilla Duty Free branding. The core duty free area, which
covers 8,000sqm, includes a broad assortment of approximately 450 brands spanning perfume & cosmetics, fashion & accessories and liquor, with other assortments such as watches & jewellery having either arrived, or set to debut in the near future. Crucially, the joint venture
GMS Duty Free allows Shilla to leverage its buying power and operational expertise as a global travel retail operator. The company said at the time of
the launch that it now generates more than 15% of its gross
MAY 2017
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a step closer to opening a new downtown duty free shop in Tokyo’s Shinjuku district, Japan, following the formation of a joint venture with renowned department store Takashimaya and All Nippon Airways (ANA) Trading Co. last year. At the time the three-way JV was
formed, the partners noted that the number of international travellers to Japan is set to rise to over 30m by 2020, the year of the country’s Olympic Games. The A&S Takashimaya Duty Free
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Company objective is to establish ‘airport-type duty-free shops’ that utilise the strengths of each of the companies.
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Expansion on the agenda Takashimaya will bring its expertise in retail curation and procurement, ANA will share its knowledge in airport-based duty free shopping, with Shilla adding its customer pulling power and insight in operating city-type duty free stores. Hotel Shilla retains a 20%
shareholding, as does ANA, with Takashimaya accounting for 60% of the business.
the concessions from incumbent DFS Group, whose decision not to take up contract extension options on the businesses effectively triggered the new tender process. Shilla says it has plans to
introduce nearly 100 new brands to HKIA, including a dedicated zone for male-specific products, and a new generation area to give exposure to emerging Korean and Japanese brands. Shilla and CDF-Lagardère
Shilla says it has plans to introduce nearly 100 new brands to HKIA.
TRBusiness TRAVEL RETAIL BUSINESS 59
Most recently, Hong Kong International Airport’s (HKIA) lucrative liquor & tobacco and perfumes, cosmetics & fashion tender ended, with the Airport Authority of Hong Kong awarding the P&C and fashion accessories licences to Shilla subsidiary Shilla Travel Retail Hong Kong Limited [L&T was awarded to Lagardère Travel Retail and China Duty Free Group partnership CDF-Lagardère Company Limited]. In a major victory, Shilla takes over
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
Above: The impact of THAAD on Chinese visitor numbers is still unclear.
TRBusiness Annual South Korea Report
Top Asia Pacific operators drive global growth
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