SOUTH KOREA. Incheon International Airport Corporation (IIAC) posted duty free sales of KRW950 billion (just over US$1 billion) in 2007, a +5.1% increase year-on-year.
Unveiling its 2007 results for the first time, the IIAC told The Moodie Report the break-down of sales was as follows:
* Fashion, leathergoods etc: 47%
* Perfumes and cosmetics (including make-up and skincare): 35%
* Liquor: 10%
* Tobacco: 8%
From 1 March 2008 Incheon will have new concessionaires for its retail programme, following a tender last year. As first revealed by The Moodie Report in June, the two cosmetics and fragrances contracts tendered by IIAC will be split between powerful downtown retailer Shilla Hotel and AK Duty Free.
Lotte Duty Free will operate the liquor and tobacco contract, while Lotte and Shilla Hotel will split the fashion and miscellaneous (including destination merchandise and foodstuffs) categories. Government-run tourism body and retailer Korea Tourism Organization will run a series of fashion and accessories (plus miscellaneous items) stores under a separate agreement.
And there are good prospects that 2007 sales can be exceeded in 2008, with the opening of the new Concourse A in August. Concourse A will add 5,000sq m of retail space to the existing 9,000sq m in the Main Passenger Terminal Building.
In other IIAC commercial news, former General Manager of Retail Planning Team Bum-Ho Kim has taken on a new senior role in the transportation department.
FOOTNOTE: Incheon International Airport Corporation President and CEO Jae-Hee Lee will deliver an important insight into the South Korean gateway’s evolving approach to non-aeronautical revenues – and its ambitious plans to create new commercial concepts at The ACI Airport Business & Trinity Forum in Shanghai on 31 March-2 April.
Hosted by Shanghai Airport Authority and co-organised by Airports Council International and The Moodie Report, the event is the world’s leading conference on airport commercial revenues.
MORE STORIES ON IIAC
Surprise results as Shilla, AK Duty Free and Lotte share the Incheon duty free spoils – 27/06/07
KTO to operate 12 shops over 2,600sq m in west area of Incheon International Airport – 20/06/07
