SOUTH KOREA. Incheon International Airport Corporation (IIAC) has issued a tender for six duty free licences in Terminal 1, for which it failed to secure agreements in a previous bid process launched in January. It covers 33 outlets and more than 6,100sq m of space. The existing contracts for these spaces begin to expire from this month.
IIAC said it had taken the difficult trading conditions caused by COVID-19 into account and will therefore accept minimum bids for rent that are -30% lower than requested under its original tender for these spaces. It also said it would waive Minimum Annual Guarantees until traffic recovers.
Licences available include DF2 (perfumes & cosmetics across 1,258sq m), DF3 and DF4 (both liquor & tobacco, across 570sq m and 547sq m respectively) and DF6 (luxury goods across 1,887sq m). In addition, two licences for small and medium-sized enterprises are on offer: DF8 (929sq m) and DF9 (937sq m), each covering all categories.
As reported, Hyundai Department Store Duty Free was confirmed as the winner of the DF7 (fashion & miscellaneous) licence. Entas Duty Free won the multi-category DF10 concession, one of several allocated to small and medium enterprises.
Having been named as preferred bidders for DF£ and DF4, The Shilla Duty Free and Lotte Duty Free withdrew their bids in April. Both parties told The Moodie Davitt Report at the time that the business was not financially viable.
Contracts will run for five years with an option to extend for a further five.
More to follow.
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