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[THE INVESTOR] Lotte Duty Free has expanded its main outlet in downtown Seoul, as part of efforts to make up for a sales shortfall following the closure of its other outlet as the license expired, Korea’s largest duty-free operator said on June 29.
The main outlet in Lotte Department Store in Myeong-dong has renovated the food court on the 12th floor into duty-free space to accommodate more cosmetics and perfume brands and reopened last week.
The firm said it aims to raise 2.78 trillion won (US$2.38 billion) in sales at the main outlet spread over four floors this year.
The renewal was timed with the closure of another duty-free store at Lotte World Tower in southern Seoul.
The duty-free store located in the 123-story skyscraper, which generated 611.2 billion won in sales in 2015, ended operations on June 27 after it failed to renew its license in a November bid.
Lotte, the world’s No. 3 duty-free operator, also faces tougher competition as local retailers have opened several new outlets in Seoul to court deep-pocketed Chinese travelers amid the flagging domestic consumption.
Shinsegae Department Store last month opened a new duty-free store in Myeong-dong next to Lotte’s main outlet, fueling competition in the highly coveted area.
To cater to the growing needs of travelers, the Seoul government plans to issue four new operating licenses for duty-free stores within this year.
Lotte is one of the strong candidates by capacity, but it remains unclear whether Lotte World Tower can get a second chance in the upcoming competition as prosecutors have looked into lobbying allegations linked with its duty-free unit.
Shin Young-ja, the head of Lotte Foundation and daughter of group founder Shin Kyuk-ho, has been under probe on suspicions of receiving kickbacks from the chief of cosmetics brand Nature Republic in return for favorable space in duty-free shops.
Hotel Lotte, the hotel and duty-free operator unit of Lotte Group, had to cancel its planned initial public offering earlier this month as prosecutors have widened their investigation into the nation’s fifth-largest conglomerate over slush fund allegations.
(theinvestor@heraldcorp.com)
The main outlet in Lotte Department Store in Myeong-dong has renovated the food court on the 12th floor into duty-free space to accommodate more cosmetics and perfume brands and reopened last week.
The firm said it aims to raise 2.78 trillion won (US$2.38 billion) in sales at the main outlet spread over four floors this year.
The renewal was timed with the closure of another duty-free store at Lotte World Tower in southern Seoul.
The duty-free store located in the 123-story skyscraper, which generated 611.2 billion won in sales in 2015, ended operations on June 27 after it failed to renew its license in a November bid.
Lotte, the world’s No. 3 duty-free operator, also faces tougher competition as local retailers have opened several new outlets in Seoul to court deep-pocketed Chinese travelers amid the flagging domestic consumption.
Shinsegae Department Store last month opened a new duty-free store in Myeong-dong next to Lotte’s main outlet, fueling competition in the highly coveted area.
To cater to the growing needs of travelers, the Seoul government plans to issue four new operating licenses for duty-free stores within this year.
Lotte is one of the strong candidates by capacity, but it remains unclear whether Lotte World Tower can get a second chance in the upcoming competition as prosecutors have looked into lobbying allegations linked with its duty-free unit.
Shin Young-ja, the head of Lotte Foundation and daughter of group founder Shin Kyuk-ho, has been under probe on suspicions of receiving kickbacks from the chief of cosmetics brand Nature Republic in return for favorable space in duty-free shops.
Hotel Lotte, the hotel and duty-free operator unit of Lotte Group, had to cancel its planned initial public offering earlier this month as prosecutors have widened their investigation into the nation’s fifth-largest conglomerate over slush fund allegations.
(theinvestor@heraldcorp.com)
