Lotte Duty Free Launches Online Pre-Sale at Singapore Changi Airport... "Expecting Offline Normalization"

Online Duty-Free Store 'iShopChangi' Opens
Convenient Shopping for Singapore Visitors
Sky Routes Blocked by COVID-19
Expectations for Fast Track Expansion Remain Valid

[Asia Economy Reporter Cha Min-young] Lotte Duty Free, which faced a blockade in offline duty-free sales channels at Singapore Changi Airport, has shifted its focus to entering the online duty-free market. Once the COVID-19 situation eases, South Korean nationals visiting Singapore will be able to enjoy convenient pre-shopping.

According to the duty-free industry on the 14th, Lotte Duty Free announced that it joined the online duty-free store 'iShopChangi' at Singapore Changi Airport on the 12th. The sales target is liquor, for which it won the business rights, and a 7% discount benefit is offered until the 30th to celebrate the opening. A limited edition wine chiller stick is also given for purchases over 200 Singapore dollars. On the iShopChangi website, options for both 'Traveller' and 'Non-Traveller' are provided for Singaporean nationals. This means they are also targeting the domestic market.

Earlier, Lotte Duty Free had acquired the liquor and tobacco business rights (sales area of 8,519㎡) at Terminals 1 to 4 of Singapore Changi Airport in October last year and planned to start sales this month. The Changi Airport store is Lotte's fifteenth overseas duty-free shop and the largest overseas sales site. It is also a large-scale business estimated to generate annual sales of around 500 billion KRW. However, due to the outbreak of COVID-19 at the beginning of the year and issues with the handover from the existing operator DFS, Lotte found it difficult to proceed with offline sales. They plan to decide the normal opening time of the offline duty-free store by monitoring future developments.

Singapore Changi Airport, ranked 6th in the world by passenger volume, was also hit hard by COVID-19. To prevent the inflow of COVID-19, the Singapore government banned all short-term foreign visitors and transit passengers from March 23. As of early June, the daily number of passengers at Changi Airport was reported to be about 100 arrivals and 700 departures. This is a sharp decline compared to the average daily passenger count of over 170,000 in May of the previous year. Changi Airport also reduced rent for duty-free operators by 50% for six months from February 1 to August, and waived rent for some stores in Terminals 2 and 3, where passenger numbers dropped significantly, until April 30.

The fortunate point is that the Singapore government's passenger lockdown order is showing signs of being lifted. Currently, only foreigners returning via government-arranged flights can transit through Changi Airport. Singapore is considering applying a fast-track (shortened quarantine period) for certain countries such as China and business visitors as part of the first phase of lockdown easing. On the 3rd (local time), the Singapore Ministry of Foreign Affairs (MFA) and Ministry of Trade and Industry (MTI) jointly announced plans to gradually allow entry for essential visitors starting from the 8th.

A Lotte Duty Free official said, "Currently, there are four terminals at Changi Airport, but two terminals are shut down and only two are operating, making it practically difficult to operate," adding, "Negotiations regarding the entry of Chinese business tourists are underway, so if demand increases in the future, it is seen as positive from the duty-free store's perspective."

This content was produced with the assistance of AI translation services.