TOP 10 OPERATORS 2018 4: SHILLA DUTY FREE


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Shilla global expansion gathers pace in 2017 as sales rise 16.5%


Despite what turned out to be a challenging year for The Shilla Duty Free and Korean DF&TR in general, the retailer still managed to continue its growth trend. Andrew Pentol reports.


ast year, Korean travel retailer The Shilla Duty Free (Shilla) set ‘huge milestones’ in terms of its


global expansion. The new 1,375sq m Singapore


Changi Terminal 4 beauty store, unveiled when the terminal opened on 31 October 2017, has helped take operations at the airport to the next level. Its Terminal 4 location is part of


the ‘integrated duty free zone’ that also incorporates the DFS liquor and tobacco offer. Shilla won the beauty contract at the airport in late 2013 covering all four terminals, but the Terminal 4 outlet is the biggest of them all. Situated just after the central


area for departure immigration, the layout is split into four zones (make- up, skincare, wellness and perfume) to make the shopping journey seamless and uninterrupted. A Shilla spokesman tells TRBusiness: “The opening of the Changi T4


store has contributed a lot to the stabilisation of The Shilla Duty Free’s operation at the airport.” Despite several unnamed external


challenges, Shilla still managed to make a profit in each quarter of 2017. Total sales amounted to KRW4,370bn


OCTOBER 2018


($4bn) in 2017, an increase of +16.5% on the KRW3,753bn ($3.4bn) in 2016. Sales from its South Korean


business rose +15.5% to KRW3,681bn compared to KRW3,186bn in 2016. Its non-Korean operations also enjoyed a strong performance, with sales rising by 21.7% to KRW689.2bn from KRW566.4bn in 2016. The spokesman says: “The Shilla


Duty Free continued its growing sales trend in 2017 throughout downtown, airport and online channels. “Downtown sales (including online)


and airport channels increased, but the downtown channel returned a stronger performance than the airport equivalent, contributing the most to Shilla’s annual performance.” He adds: “High spending South


Korean and Chinese customers were the key drivers in terms of The Shilla Duty Free’s overall sales performance in 2017.”


Key contract gain The most significant contract gain for Shilla last year was the capture of the highly sought-after perfumes & cosmetics and fashion accessories concession at Hong Kong International Airport. Its new Beauty&You concept officially


opened on 28 June following the soft opening of six beauty outlets in December 2017. Around 200 brands are available,


including a host of premium labels new to HKIA. These include David Beckham’s global grooming brand House 99, which recently opened its first Asian pop-up at the airport having made its debut there in June. In addition, The Beauty&You


concept showcases the best of Korean and Japanese brands including The History of Whoo, su:m37º, ReFa and NARS. “The contract with HKIA also


highlights the company’s presence in global travel retail. It means The Shilla Duty Free is in three Asian hub airports [which are Singapore Changi, Macau and Hong Kong – Ed] and shows it has become a powerful travel retailer globally.” Shilla’s business in Hong Kong is moving forward at an outstanding


“The opening of the Changi T4 store has contributed a lot to the stabilisation of The Shilla Duty Free’s operation at the airport.”


Shilla Duty Free Spokesman TOP 10 OPERATORS 31


Above: Shilla began operating at Incheon T2 when the terminal opened in January.


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