Changi Airport Group (CAG) announced on 24 October 2019 that it has awarded its core-category Liquor & Tobacco concession tender to South Korean retailer, Lotte Duty Free (Lotte). The concessions was with the Hong Kong-based DFS Group for 40 years, which decided not to bid to renew the business. Two other travel retailers, German Gebr Heinemann and The Shilla Duty Free from South Korea bid for the tender, which closed on 26 August 2019. The proposals received were evaluated based on a holistic set of criteria covering both qualitative and quantitative factors.
According to the press release from CAG, the proposal from Lotte stood out with its strong omni-channel and marketing ideas which will propel CAG’s travel retail strategy forward. Lotte is the world’s second largest travel retailer in terms of sales turnover and has concession experience in markets like Australia, Japan, New Zealand, South Korea and Vietnam.
Lotte will start operations in June 2020 at four terminals spanning more than 8,000 sqm of retail space across 18 liquor and tobacco stores, all of which will be rejuvenated with fresh designs. In addition, all stores will be infused with lifestyle elements and packed with experiential activations, such as product personalization in the form of customized whiskey-blending. They will also sport new liquor boutique concepts and specially curated zones featuring the latest and trendiest products in the market.
Changi Airport is the world’s seventh busiest airport for international traffic, and it managed 65.6 million passenger movements in 2018. Changi Airport’s retail and dining offerings total more than 500 stores and over 260 F&B outlets.
(Sources: Changi Airport Group; Inside Retail)