Lotte Duty Free was chosen as the operator over Shilla Duty Free. Lotte Duty Free said on Oct. 24 that it has been selected as a duty-free shop operator for cigarettes and alcoholic beverages at terminals 1 to 4 at Changi Airport.
The operating period of the duty free shop is a total of six years from June 2020 to June 2026. The area is 8,519 square meters, the biggest overseas store run by Lotte Duty Free. Lotte expects sales to reach 4 trillion won over the next six years.
Analysts say the Lotte’s success was mainly due to the emphasis on the fact that the company has been running liquor and tobacco businesses at airports around the world, including Incheon, Oceania and Vietnam, and has the world's best capacity to operate online duty-free shops.
Lotte plans to secure cost competitiveness by entering Changi Airport and boost its business profitability to pave the way for its goal of 1 trillion won in overseas sales.
The company also expects positive effects on its brand value as a global operator and various overseas projects to be carried out in the future.
"The acquisition of the right to operate Changi Airport is significant in that the company has prepared a bridgehead for achieving its vision of becoming the 'Travel Retail Global No. 1'. In the future, we will promote the excellence of Korean duty-free shops abroad by accelerating our entry into new overseas markets," said Lee Kap, CEO of Lotte Duty Free.
Lotte has been operating 13 stores in eight countries, including the airport in Hanoi, Vietnam, and the airport in Brisbane, Australia, since 2012 when it first made inroads into foreign markets.