AUSTRALIA. Lotte Duty Free has been awarded the duty free concession at Melbourne Airport after a hotly contested open tender, The Moodie Davitt Report can confirm.
The Korean number one and world number two travel retailer will operate a ten-year contract from 1 June. It will replace long-time incumbent Dufry.
Lotte Duty Free’s success will be a huge boost for the company’s ambitious international expansion agenda.
As reported, 11 Expressions of Interest were received for the duty free concession, which was later reduced to seven candidates, then six and finally a shortlist of three.
Australia’s second-busiest airport offered the opportunity to deliver an “exceptional” duty free experience across the international terminal’s existing 3,600m duty free space plus an online ecommerce platform.
The award boosts Lotte Duty Free’s presence in Australia, the company having entered the market when it acquired JR/Duty Free at the end of 2018. As a result of that acquisition, Lotte Duty Free also runs the Brisbane Airport duty free concession, currently the subject of a Request for Proposals.
Other duty free operations include Darwin International Airport and downtown stores in Melbourne and (recently opened) Sydney.
The timing of the new contract looks increasingly positive. International traveller numbers at Melbourne Airport climbed to their highest level in December for almost three years amid the first festive period with restriction-free travel since 2019. The 766,439 international travellers served in the month was almost 120,000 more than in November and represents 71% of the number recorded in December 2019.
Including domestic, 2,635,925 passengers passed through Melbourne Airport in December, which is 79% of the 3,332,940 passengers processed in December 2019.
We will bring you full details and analysis early next week. ✈
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