SOUTH KOREA. The Shilla Duty Free’s sales to Chinese customers fell by -30% year-on-year over the weekend (25-26 March) as the fall-out from the THAAD anti-missile system dispute escalates.
As reported, all South Korean retailers have been hard hit by a China National Travel Administration (CNTA) ban on group travel to South Korea that took effect on 15 March.
The ban is part of a furious political and consumer backlash against the South Korean government’s decision to deploy the controversial US anti-missile system as a defence and deterrent against North Korean attacks. China considers THAAD a threat to its own security and to regional stability. Shilla’s main rival, Lotte Duty Free, has felt the greatest brunt of the backlash, due to parent Lotte Group’s agreement to site THAAD on company land.
A Shilla spokesperson told The Moodie Davitt Report: “The drop was deeper compared to the previous week due to the Chinese restriction on group tourism to South Korea being effective from 15 March.”
He said that the decrease had been offset to some extent by improved sales to other nationalities [mainly Koreans and Japanese] and enhanced online sales.
