The retailer beat out domestic rivals Lotte Duty Free and Shinsegae DF to win the bid. Bidding for the duty-free concession came after the withdrawal of Hanwha Galleria, retail unit of Hanwha Group, from the airport after seeing a drop in visitors from China due to the ongoing diplomatic row.
Shilla Duty Free continues to widen its footprint in Asia Pacific, securing a five-year licence to operate its duty-free stores in the resort island of Jeju said the Korea Customs Service yesterday (December 20).
The retailer beat out domestic rivals Lotte Duty Free and Shinsegae DF to win the bid. Bidding for the duty-free concession came after the withdrawal of Hanwha Galleria, retail unit of Hanwha Group, from the airport after seeing a drop in visitors from China due to the ongoing diplomatic row.
The win is a significant one, with annual sales of duty-free stores at Jeju expected to surpass 60 billion won (US$55.6 million), according to industry sources.
Retailers at Jeju International Airport will however be subject to rental fees based on their total annual sales – a first among the country’s airports. A 20.4% figure was put forward, in an attempt to ease the burden of duty-free operators at the airport.