SOUTH KOREA. Lotte Duty Free World Tower reopened for business today, precisely 193 days since it was forced to close on 26 June 2016, following its unsuccessful 2015 bid to retain its licence.
As reported, Lotte lost out on that hugely controversial bidding round, but regained the five-year licence last month in a bid for four new Seoul downtown duty free permits. Moving with impressive speed, it has reopened one of the country’s biggest duty free stores within just 19 days of that landmark decision.
The company said it will achieve sales of KW1.2 trillion (just over US$1 billion) in 2017, a huge lift on the US$519.7 million posted in the retailer’s last full year of trading, 2015. For the period 1 January to 26 June 2016, the store generated sales of US$293.7 million, but that result was heavily affected by a running down of stock as closure neared.
This morning Korean time, following the issuing of the regulatory patent, Lotte Duty Free began a sequential opening by brand. Some 350 brands will eventually be offered in a much-expanded shop (see below for details), including blockbuster names such as Louis Vuitton, Hermès and Chanel (see photos below).
On the opening day, around 5,000 Chinese tourists will visit the store, and some 8,000 overseas travellers in total are expected. Various promotions are in place to celebrate the reopening, including special memorial gold bar prizes and hotel accommodation gifts.
Lotte Duty Free CEO Jang Seon-wook said, “For the stable operation of the World Tower store, more than 1,000 employees are returning home and preparing for sales. For customers who waited for the reopening of the World Tower store, I will repay you in kind.”
He added: “We will do our best to build the world’s only one-stop tourist and shopping infrastructure in connection with the various cultural tourism resources around the World Tower, and to make the World Tower complex a landmark of tourism in Northeast Asia.”
As revealed earlier by The Moodie Davitt Report, Lotte will expand the store by some +52% from 11,400sq m to 17,334sq m and increase the number of brands to over 700 from the former 500-strong line-up.
Promotional pizazz
Customers making purchases over just US$1 [correct -Ed] at all Lotte Duty Free branches (excluding the Jeju and online shops), will be presented with a gold bar featuring a World Tower emblem.
Additionally, a ‘Lotte World Tower Goldbug 500g’ will be presented to three lucky draw winners.
Free accommodation at Lotte Hotel in Seoul and 20 buffet dinner prizes will also be offered in the draw. In addition, Korean customers spending over US$1 will enter a draw offering attendance at three major winter events – the Quebec Winter Carnival in Canada; the Sapporo Snow Festival in Japan; and the Ice Blue Light Festival in Harbin, China.
All Korean customers who purchase over US$400 worth of duty free will be presented with a stylish tumbler while stocks lost.
Note: On the eve of last month’s licensing decision, Lotte Duty Free CEO Jang Seon-wook gave his first press interview, talking to Martin Moodie at company headquarters in Seoul. Click here to read that landmark feature.
