SOUTH KOREA. Lotte Duty Free has been awarded the liquor & tobacco concession (DF2) at Gimpo International Airport, Seoul after an open tender.
Lotte Duty Free will replace incumbent and arch rival The Shilla Duty Free. The bid was also contested by Shinsegae Duty Free and Hyundai Duty Free.
The success, revealed by Korea Customs Service yesterday, builds on Lotte Duty Free’s existing perfumes & cosmetics contract at the airport. The new concession is an important gain for the Korean industry giant as it no longer has a presence at the country’s major gateway, Incheon International Airport.
As reported, Korea Airports Corporation issued an open tender late last year for the airside departures space at the Seoul airport. Bids closed on 15 January for the seven-year contract, which embraces 733.4sq m of space. The country’s four leading travel retailers – Lotte Duty Free, The Shilla Duty Free, Shinsegae Duty Free and Hyundai Duty Free – tabled bids.
Korean media title Seoul Economic Daily estimated DF2’s annual sales at a modest KRW41.9 billion (US$31.5 million) but noted the contract’s solid profitability potential based on its percentage of sales formula compared to Incheon International Airport’s per-passenger fee structure. ✈
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