SOUTH KOREA. Shinsegae Duty Free has been awarded the fashion & accessories contract at Incheon International Airport Terminal 2. The DF3 concession covers 14 stores embracing 4,889sq m of retail space.
Incheon International Airport Corporation confirmed the news to The Moodie Davitt Report. It draws a line under troubled period for the concession, which was retendered multiple times with successively reduced minimum guarantees in an effort to attract interest.
Bidding was negatively affected by the perceived high cost of entry and the recent collapse in Chinese tourism caused by the THAAD dispute between South Korea and China. Last year the Chinese represented almost 50% of total arrivals and generated around 65% of duty free spending. Chinese visitor arrivals have fallen dramatically so far in 2017, by -40% year-on-year in March, -66.6% in April, and -64.1% in May.
As reported, the other T2 contracts have been awarded as follows: DF1, The Shilla Duty Free; DF2, Lotte Duty Free; DF4 SM; DF5 Entas Duty Free; DF6 CItyPlus.
The new terminal is due to open in the final quarter of this year.
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