SOUTH KOREA. Korea Airports Corporation has released an open tender for the airside departures liquor & tobacco contract at Gimpo International Airport, Seoul.
The Shilla Duty Free is the incumbent, having won a five-year contract in 2018. It subsequently took up a six-month extension to April 2024.
According to the bid document, published only in Korean, the concession will run for seven years, embracing 733.4sq m of space.
The minimum annual guarantee is 30% of sales, stated as KRW419 billion/US$32.3 million (full-year 2023 sales estimation based on recent monthly average sales).
Submissions are due by 15 January.
Korea Airports Corporation will hold an on-site briefing on 18 December. Bids close at 2pm on 15 January, a tight timeline that will make it very difficult for any international company to bid, a senior travel retail source told The Moodie Davitt Report.
The contest is therefore likely to be fought out between some or all of the Korean sector heavyweights, The Shilla Duty Free, Lotte Duty Free, Shinsegae Duty Free and possibly Hyundai Duty Free.
As is mandatory now in the Republic, the tender involves a two-stage assessment process. Korea Airports Corporation shortlists its top two companies based on a combination of technical and financial proposal evaluations. Korea Customs Service then reviews the bids and makes a final decision.
The airport’s perfumes & cosmetics departures store retailer is Lotte Duty Free which won a ten-year agreement (five years + a five-year extension) in 2022. ✈
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