SOUTH KOREA. Lotte Duty Free will tomorrow celebrate the full opening of its store at Gimhae International Airport in the country’s second city, Busan, projecting 2017 sales of KW120 billion (US$99.7 million).
As revealed by The Moodie Davitt Report, the retailer took over one of the two duty free concessions at the airport (the other is run by the Dufry ThomasJulie partnership) when incumbent Shinsegae Duty Free quit its operation, citing profitability concerns.
Lotte Duty Free has been operating out of temporary 158.3sq m shop space (pictured) since 1 September. The newly extended store embraces 980.44sq m of space, some 329sq m or +51% larger than the former Shinsegae Duty Free operation.
Lotte Duty Free said it is projecting a profitable business in 2017, based on its sales target of KW120 billion and an improved product offering and store design. It said the temporary store is currently generating only 20% of anticipated daily sales, which are expected to rise to over KW200 million (US$165,000) post the improvements.
To achieve that goal, the retailer said it has strengthened and reconfigured the brand line-up, in particular boosting the imported cosmetics store space by around +40% and introducing new names such as Giorgio Armani, Jo Malone and Tumi.
The offer features over 120 leading brands, including Chanel, Dior and Sulwhasoo, as well as food, electronics and accessories.
Lotte Duty Free CEO Jang Sun-wook (recently named by The Moodie Davitt Report as one of our People of the Year) said, “Lotte Duty Free is planning to make the most of its experience and know-how gleaned at Gimhae from 2007 to February 2014. We will offer an expanded duty free shop featuring extended brand power that will be loved by airport users.”
To celebrate the opening, Lotte Duty Free is hosting a series of promotions. These include the chance for 30 Korean shoppers who spend over US$400 to win a trip to Okinawa for two to watch the Lotte Giants baseball team train.
Shoppers using Lotte Card to make purchases of over US$500 will be rewarded with prepaid shopping card worth up to ₩60,000/US$50. Additionally, up to KRW1 million (US$825) worth of pre-paid cards, movie tickets, drink coupons, and onnuri certificates (gift coupons) will be given away to qualifying shoppers.
Note: Lotte Duty Free CEO Jang Sun-wook recently gave his first industry interview to The Moodie Davitt Report, in which he outlined his ambitions for the company and business philosophy. Click here to read.
