TOP 10 OPERATORS 2: LOTTE DUTY FREE
“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. We are really looking forward to when business circumstances return to normal.”
Spokesperson, Lotte Duty Free
Martens, Crocs, Joseph & Stacey, Primage and Lucky Chouette. However, in the first half of 2020
online sales dropped by around 10% year-on-year. “Considering the travel retail market was unaffected by Covid-19 for the first two months of the year, the sales figures are much worse,” the spokesperson acknowledges. On the evolution of the company’s
“The Vietnam market was growing
leaps and bounds [before Covid-19]. This market will be our primary target for foreign expansion when things return to normal.” On top of its bricks & mortar
business, Lotte posted a +49% online sales increase in the first half of 2019 to KRW1.4tn. Come the end of the year, the figure had risen +60% to an all-time high of KRW3.2tn.
Online shoppers up to 5.4m On average, the online platform welcomed around 5.4 million monthly active users between January and June 2019. As of July 2019, it was offering
around 87,000 products from 1,099 brands, of which 324 were Korean industry exclusive labels. These included Filorga, Eve Lom, Santa Maria Novella, Barbour, Dr.
online business, the spokesperson emphasises the growing importance of e-commerce. “Lotte Duty Free’s online channel
has exceeded 30% of total sales for some time. In an increasingly competitive online travel retail environment, the Lotte Duty Free online store has been the world’s best over the past decade or so and shown average annual growth of around +50% in the last couple of years. “We will continue to focus
on providing a convenient shopping experience on the online platform, targeting younger generations in particular.” At airports such as Seoul Incheon,
Lotte also has a duty to provide a convenient shopping experience. “Lotte Duty Free is the only duty free operator to operate at Incheon Airport consecutively from [construction]
Phase One to Phase 3.” As Incheon International Airport Corporation has now cut the estimated rental price in the fresh Terminal 1 duty free tender by around 30% and the government has announced its latest round of relief measures, Lotte is expected to participate in the new Terminal 1 tender. The tender for the spate of
undecided Terminal 1 contracts was announced on 6 August. Initially, the registration deadline was 14 September (10:00-16:00 KST), but it was later extended to 21 September (10:00- 16:00 KST). Additionally, the deadline to
submit business and financial proposals moved from 15 September 2020 (10:00-16:00 KST)
to
September (10:00-16:00 KST). At the time of writing Lotte was
reviewing the request for proposal document and had not confirmed its participation. “Thanks to the additional rent
relief measures by the Ministry of Economy and Finance and Incheon International Airport Corporation, we are thoroughly examining the RFP for the Phase Four [Terminal 1] concessions under the slightly more favourable business circumstances,” the spokesperson concludes. «
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A Lotte Duty Free store at Seoul Incheon Terminal 2. 14 TOP 10 OPERATORS OCTOBER 2020
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