SINGAPORE. Lotte Duty Free today began its six-year contract as Singapore Changi Airport liquor & tobacco concessionaire, taking over from long-time incumbent DFS Group.
As reported, the Korean duty free powerhouse will run 18 liquor & tobacco stores across Changi Airport’s four terminals, spanning more than 8,000sq m of retail space.
Lotte Duty Free will eventually offer over 3,000 tax and duty free wines & spirits as it expands its product line-up.
These will include special and limited-edition whiskies and Cognacs, exclusive labels only found at Changi Airport, a dedicated collection of Asian spirits highlighting brands from Singapore and Korea, as well as alcohol-free options to cater to growing demand for non-alcoholic beverages.
Renovation works for Lotte’s stores at Changi Airport will take place in phases, beginning in Terminals 1 and 3, once current ‘circuit breaker’ restrictions are lifted.
Integrating elements of nature, inspired by Changi Airport’s gardens, and featuring innovative in-store technology, Lotte’s design concept for its stores will “redefine the retail experience” according to Changi Airport Group (CAG).
Concepts will include a specialised Cognac brand boutique, immersive experience zones dedicated to whisk(e)y, gin and wines, and a high-tech tasting bar, among others.
With the gradual restarting of travel in Singapore, Lotte will first retail on Changi Airport’s duty free ecommerce platform, iShopChangi.com, before its physical stores open at a later stage.
To celebrate the start of its operations, Lotte is offering a -7% discount on a curated range of products from 12 to 30 June, in addition to tax- and duty-absorbed prices, as well as a -5% discount voucher for the next purchase in-store. Singapore residents can also shop selected Lotte’s products on iShopChangi without flying.
CAG Executive Vice President, Commercial, Lim Peck Hoon said: “We are excited to welcome Lotte to the Changi family. The world of travel retail is constantly evolving, and with ecommerce growing exponentially in the current climate, we are positive that this new partnership will bring about a transformation to Changi’s core liquor & tobacco concession. Apart from a complete revamp of store designs, passengers can also look forward to an omnichannel experience as we integrate a seamless brick-and-mortar shopping experience with ecommerce.”
Lotte Duty Free CEO Kap Lee said: “The new operations at Changi Airport will be the largest among all of Lotte’s Asia Pacific operations. We look forward to bringing new and exciting brands, activations and experiences to Changi’s shoppers. We are confident that this new relationship will bring us one step closer to our vision to be the ‘Global No.1 Travel Retailer’, as we grow together with CAG and the brand partners at Changi.”
The Moodie Davitt Report estimates that the liquor & tobacco contract generated around S$590 million (US$430 million) in sales last year, around S$400 million of that in departures, the balance from arrivals duty free. For tobacco, the entire business was in departures.
