The Shilla Duty Free posts +19% rise in Q2 revenues : Moodie Davitt Report

SOUTH KOREA. Hotel Shilla’s second-quarter travel retail revenues rose by +19% year-on-year to KRW1,010.1 billion (US$775 million). Howevere, travel retail operating profits decreased by -69% to KRW14.8 billion (US$11.4 million).

Downtown revenue for The Shilla Duty Free increased by +14% year-on-year to KRW884.1 billion (US$678.4 million), representing 87.5% of total sales. Airport sales, driven by the country’s recent opening up to inbound and outbound travel, surged by +71% from a very low 2021 base to KRW126 billion (US$96.7 million).

The Shilla Duty Free is striving hard to rejuvenate Korean consumer spending after a troubled two and a half years due to the pandemic. In June it opened the first permanent BTS goods store in travel retail, honouring the hugely popular Korean boy band.
Space of BTS is located at the retailer’s flagship Seoul downtown store.

Airport sales at last show signs of life following a chronically difficult period since early in the pandemic. All charts courtesy of Hotel Shilla. Click to expand.

Revenue for the hotel and leisure business increased by +46% year-on-year in the quarter while an operating profit from Q2 2021 turned modestly but encouragingly into the black.

Hotel Shilla said it would aim to improve travel retail profitability in Q3 by responding to changes in the business environment and demand in the market.

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