- To sell liquor and tobacco for six years from June 2020
- Gearing for a KRW 1 trillion revenue through international sales in 2020 by establishing a duty-free belt in the AsiaPacific
- To operate 22 duty-free stores in 9 Asia-Pacific countries, including the Changi Airport store
On the 24th, Lotte Duty Free (CEO Lee Kap) won the concession for six years of duty-free operations at Singapore’s Changi Airport.
After working out the finer details with Changi Airport Group, Lotte Duty Free will run the stores in arrivals and departures for six years beginning in June 2020. The approximately 8,000 m2-size store will mainly sell liquor and tobacco products, making it Lotte Duty Free’s largest overseas branch.
Visited by approximately 65.6 million passengers in 2018, Changi Airport ranked the 7th most-traveled airport and was named the world’s best airport for six consecutive years by Skytrax, a British air travel review and ranking firm.
At the bid, Lotte Duty Free emphasized its experience and competence in operating liquor and tobacco stores in airports in various regions such as Incheon, Oceania, and Vietnam. It can be evaluated that the company’s strategies to strengthen omnichannel retail based on its ability to operate world-class online duty-free shops led to successful bidding. With the operating rights for liquor and tobacco sales at the two Asian hub airports, Incheon and Changi, Lotte Duty Free plans to become more cost-competitive with economies of scale and increase profitability. At the same time, the company expects this to be an opportunity to raise its brand value as a global business operator and open the gates to various overseas projects in the future.
CEO Lee appreciated Changi Airport Group’s recognition of Lotte Duty Free’s strengths and strategies. “Acquiring an operating right at Changi Airport laid a foundation towards realizing our vision of ‘Global no. 1 travel retailer," he added. "We will put our utmost effort into growth as a global brand with Changi Airport.”
Lotte Duty Free's overseas operations are seeing vast expansion after launching five stores in Oceania in January this year and opening an airport store in Hanoi, Vietnam, in July. By winning the concession, the company entered its 8th international market, following Indonesia, Guam, Japan, and Vietnam. This further solidified its foundation in the overseas market, establishing the so-called Lotte Duty Free belt in the Asia-Pacific region, where Chinese tourist-driven growth is anticipated. With another store opening in downtown Danang at the end of this year, Lotte Duty Free will take one step closer to its goal of reaching KRW 1 trillion in overseas sales in 2020 and becoming global no. 1 in the duty-free sector.