SOUTH KOREA. Shinsegae Duty Free posted a +4.7% year-on-year increase in net sales* for 2023 to KRW2.006 trillion (US$1.38 billion) but suffered a heavy KRW35.9 billion (US$24.7 million) operating loss, compared to an KRW86.6 billion profit (US$59.6 million) a year earlier.
In Q4, revenues rose +14.7% to KRW555.2 billion (US$382.1 million) as operating losses were transformed from an KRW8.9 billion (US$6.1 million) profit a year ago to a negative KRW35.5 billion (US$24.4 million) result this time around.
Read together, the full-year and Q4 operating losses show the deficit was concentrated in the final quarter as the normalised Incheon International Airport Corporation concession fees started to weigh heavily.
Results were affected by severance pay resulting from downtown duty-free redundancies, as well as the impact of the changed Incheon rental terms.
Conversely, Shinsegae Department Store posted all-time high 2024 revenues of KRW7.2435 trillion (almost US$5 billion), up +2.2% year-on-year.
Shinsegae Central City in Busan once again posted solid sales and operating profit growth, a stark contrast to the fortunes of the retailer’s downtown Busan store business which was forced to close on 24 January this year. ✈
* Gross sales means total sales amount printed on customer receipts. Net sales means gross sales – consignment sales + sales commission, recorded on fiscal reports.
