TOP 10 OPERATORS 2: LOTTE DUTY FREE
Following the completion of the transaction to acquire JR/Duty Free’s Australian and New Zealand business at the end of 2018, Lotte now has control of on-airport stores in Brisbane, Darwin, Wellington and Canberra, plus the CBD store in Melbourne’s Swanson street. Expanding into Oceania was a
major feat in itself, but the capture of the six-year liquor and tobacco at Singapore Changi Airport was a significant milestone.
Success in Singapore The liquor and tobacco tender was Changi Airport’s most important leasing exercise since the last round of tenders for the liquor and tobacco and perfumes and cosmetics concessions in 2013. DFS Group had held the
concession since 1980 and forged a strong partnership with Changi Airport Group over the many years that followed. Its decision to relinquish the
concession having previously agreed a two-year contract extension in 2018 surprised many. But this did not bother Lotte, which triumphed at the expense of Korean rival The Shilla Duty Free and Gebr. Heinemann. The fact Lotte lost out to King
Power International in the Bangkok Suvarnabhumi International Airport
Da Nang Airport sales increased a whopping +470% in the fourth quarter of 2019 compared with the first three months of operations.
duty free and Thai regional airport tenders earlier in the year, having formed a joint venture with Bangkok Airways, made the Changi Airport victory even sweeter. Commencing on 9 June 2020 (online
initially due to the impact of Covid-19) the new agreement covers all 18 liquor and tobacco stores across Changi’s four terminals, spanning more than 8,000sqm of retail space. Reflecting on this key contract
gain, the spokesperson remained mindful of the current global situation. “It’s very hard to assess the importance and performance of concessions due to Covid-19, but Changi Airport is definitely one of the greatest hubs in the world.
“The whole industry is suffering from unprecedented levels of uncertainty and financial difficulties. Even if we achieve our vision of becoming the world’s best travel retailer, it will be less meaningful.”
Spokesperson, Lotte Duty Free
We are really looking forward to when business circumstances return to normal.” In Vietnam, sales at Da Nang, Cam
Ranh and Hanoi Airports increased +470%, 880% and 76% in the fourth quarter of 2019 respectively compared to their first three months of operations.
Lotte has control of a number of Australian on-airport stores in locations such as Brisbane. OCTOBER 2020 TOP 10 OPERATORS 13
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