SOUTH KOREA: SHINSEGAE DUTY FREE
Shinsegae Duty Free targets double-digit revenue growth
Shinsegae Duty Free’s opening of a new Gangnam downtown shop and various new additions at Seoul Incheon Airport meant the retailer ‘vigorously expanded’ its market share in 2018, as David Hayes reports.
S
hinsegae Duty Free has been one of South Korea’s fastest growing operators over the
past year, recording total sales worth an estimated $2.75bn in 2018 while its duty free estate has almost doubled in size. Shinsegae’s revenue also almost
doubled last year, with its Seoul flagship Myeongdong downtown store registering ‘record sales’ while other new shops began trading. Strong revenue growth is
anticipated in 2019 as more luxury brands open boutiques in Shinsegae’s Gangnam downtown store and at Incheon Airport T2. Hong Seok Ho, Senior Vice
President, Shinsegae Duty Free Merchandising Division, tells TRBusiness: “Duty free sales in Korea this year have shown strong growth of +28% compared to 2018. “Downtown stores in particular
have shown a high increase of +31% year-on-year following the opening of our Shinsegae Gangnam and Hyundai COEX stores last year. “In 2019, the total market here is
predicted to grow +14% and reach estimated sales of $20bn. “This is as new companies enter
the market and arrival duty free shops open at Incheon Airport.” The retailer’s operations grew
rapidly in 2018 as it opened a succession of new stores. “In 2018, Shinsegae vigorously
Shinsegae opened this new Seoul Gangnam downtown store last year.
expanded its market share by opening new stores in three locations; Incheon Airport Terminal 2, Seoul Gangnam downtown and Incheon Airport Terminal 1,” adds Hong. “This represented unparalleled
growth and we continue to increase our sales. As the duty free market grows, Shinsegae aims to strengthen its market share.”
Expansion phase Shinsegae started last year’s expansion phase on 18 January with the opening of 20 luxury boutiques at Incheon International Airport’s new Terminal 2, where it operates the fashion concession. This comprises six outlets divided
into small separate brand boutiques. The next flurry of activity occurred
last summer as Shinsegae expanded its Seoul downtown and Incheon Airport operations. On 18 July, Shinsegae Duty Free
Fashion & Accessories store operated by Shinsegae in Incheon Airport's T1.
MAY 2019
opened the Gangnam downtown shop and managed to generate over $150m during the second half
of 2018. More luxury brands have confirmed plans to open boutiques this year. “Major luxury brands such as
Burberry, Salvatore Ferragamo and Omega are scheduled to open this year,” Hong says. One of the first Q1 2019 luxury
brand arrivals in the Shinsegae Gangnam store was Balenciaga, which opened its first-floor boutique on 1 February. This was in time to serve mainland Chinese New Year holiday-makers. In addition, an IWC watches
corner opened on the third floor in February, replacing the previous
“In 2019, the total market here is predicted to grow +14% and reach estimated sales of $20 billion.”
Hong Seok Ho,
Senior Vice President, Shinsegae Duty Free Merchandising Division
TRBUSINESS 87
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