AUSTRALIA. South Korean travel retailer Lotte Duty Free has confirmed to The Moodie Davitt Report it is reviewing the potential closure of the company’s Sydney downtown store.
Lotte Duty Free opened the three-storey 3,000sq m retail emporium on 5 May 2022 on the corner of Pitt Street and Market Street, the heart of Sydney’s Central Business District’s retail precinct, promising “a duty-free shopper experience like no other”.
However trading conditions have deteriorated markedly since then, a decline led by much-softened Chinese traveller spending. Coupled with high rent and price competitiveness erosion due to unfavourable exchange rates, the writing is believed to have been on the wall for some time in line with the retailer’s decision to focus on profitable operations.
“As you may be aware, we have made similar decisions in the past with our Melbourne and Da Nang downtown stores, both of which were part of a broader strategic review,” the company told The Moodie Davitt Report.
“Going forward, our global business direction is focused on portfolio optimisation, building a more stable and sustainable operational footprint centered around airport duty-free, rather than downtown locations.”
However, Lotte dismissed as inaccurate reports in Seoul Economic Daily suggesting the retailer is also considering the future of its Australian airport duty-free shops.
“We would like to clarify that several details reported in the article are not accurate, particularly references to RFP processes involving external accounting and law firms, as well as the content pertaining to our Australian airport store operations,” the company told us. ✈
