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New Incheon T2 and Paradise City resort locations to spark Entas DF sales growth
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Having already opened a store in the new Incheon T2 in January, Entas Duty Free CEO David Yu tells David Hayes that the retailer is preparing to move its Incheon downtown duty free store to a new location in the recently opened Paradise City integrated resort complex.
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n targeting a double-digit revenue rise in 2018, Entas Duty Free is anticipating an overall
sales surge from the launch of duty free operations at two new locations – Incheon International Airport T2 and Paradise City resort in Incheon itself. Its first new retail operation was
launched on 18 January. This was a mixed category SME duty free store (DF5) in the new Seoul Incheon T2, which is now reporting rising sales. Situated below the T2 airside west
wing transfer lounge, the 820sq m free-standing rectangular shop has four entrances along three sides. “Ours is an all category store – one
third of the floor area is perfume and cosmetics; one third is liquor and tobacco; and the other one third is fashion, accessories, travel souvenirs and gifts,” says David Yu, CEO of Entas Duty Free, in an exclusive interview with TRBusiness. “South Korean and Chinese
passengers are the biggest duty free customers in T2,” says Yu. “South Korean passengers make up 70% of all passengers using T2; the 30% international passenger share is mostly Chinese.”
Weathering THAAD Liquor and tobacco products are the major items purchased in the new Entas T2 shop.
MAY 2018
“We expect to do monthly sales of $3 million in T2,” Yu discloses. In addition to its new T2 mixed category store, Entas holds an SME concession (DF12) at Incheon International Airport T1. The liquor, tobacco and general
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goods shop in the main central terminal luxury boutique hub is facing the airport’s landmark Louis Vuitton boutique. Sales in the Entas T1 shop appear to have weathered the impact of the THAAD missile crisis better than other operators. This is because the shop relies more on South Korean customers. “With the -28% decrease in
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passengers, we expected a -15% to -20% decrease in revenue; fortunately, we were not hit as badly as others,” Yu comments. He adds: “Revenue in our T1 shop
has grown 61% compared with Lotte Duty Free’s performance there. This is since we took over the store which Lotte operated until 2016.”
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Seaport DF -40% Although overall sales remained steady at Incheon in 2017, the situation was different last year at Incheon International Seaport, where Entas operates a mixed category duty free store serving departing international ferry passengers. The diplomatic crisis between Beijing and Seoul over South
David Yu, CEO, Entas Duty Free
TRBUSINESS 69
line with South Korea’s other international seaports. Passenger numbers were down 40% last year and duty free revenue dropped 40%,” Yu comments. “However, seaport duty free
retailing is a strategic business for us and we will continue to expand; we
“Incheon Seaport suffered in line with South Korea’s other international seaports. Passenger numbers were down 40% last year and duty free revenue dropped 40%.”
Korea’s THAAD missile deployment caused Chinese ferry passenger numbers visiting Incheon Seaport to sharply fall. This was after travel agencies in Beijing banned group tours to South Korea in spring 2017, prompting sales in the seaport’s duty free shops to suffer as a result. State-owned Incheon International Seaport operates two passenger terminals used by ferry boats sailing 10 routes to different Chinese ports. Entas operates a 740 sq m mixed
category duty free shop in Incheon Seaport T1, which handles about 60% of all international passengers. “Incheon Seaport suffered in
Above: The new Entas Duty Free Incheon T2 store is reporting rising sales.
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