SOUTH KOREA. Korea Customs Service (KCS) has confirmed the winners of the five duty free contracts on offer at Incheon International Airport.
The Shilla Duty Free, Shinsegae Duty Free and Hyundai Department Store Duty Free will share the five concession packages (outlined in further detail below) reserved for big corporations as follows:
The Shilla Duty Free: DF1 and DF3
Shinsegae Duty Free: DF2 and DF4
Hyundai Department Store Duty Free: DF5
Incumbents Cityplus Duty Free (DF8) and Kyung Bok Kung Duty Free (DF9) have been awarded the two concessions set aside for small and medium enterprises.
For DF5, Shinsegae Duty Free tabled the top offer ahead of Shilla but third-placed Hyundai Duty Free picked up the spoils as a single retailer could only win one package within the two groups on offer (Group One: DF1 and DF2; Group Two: DF3, DF4, and DF5).
The results, which confirm the verdict of Incheon International Airport Corporation (IIAC) in the first round of the two-part evaluation, leaves Korea’s long-time giant Lotte Duty Free out in the cold at the country’s main gateway. As reported, key talking points arising from the bid included the aggressive approaches of Shilla and Shinsegae and the highly conservative offers by Lotte Duty Free, clearly concerned about the future profitability of the airport business.
The original IIAC scoring was based on a combination of business plan (60%) and financial offer (40%). In the subsequent KCS judging, the financial offer accounted for 400 points and the business plan 500, with the IIAC business plan assessment worth another 100.
The concessions kick off on 1 July. ✈
Click here for our detailed analysis of the tender packages.
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