March Sales Recovered to 1.4 Trillion Won... Duty-Free Shops Still in the 'Corona Tunnel'

[Asia Economy Reporter Yuri Kim] Domestic duty-free shop sales in March recorded 1.4347 trillion KRW, showing a recovery compared to the previous month.

According to the Korea Duty Free Shop Association on the 3rd, domestic duty-free shop sales in March reached 1.4347 trillion KRW, a 22.76% increase from 1.1687 trillion KRW in February. Foreign sales amounted to 1.3674 trillion KRW, and domestic sales were 67.3 billion KRW, increasing evenly by 22.78% and 22.36% respectively compared to the previous month.

This is the highest level since 1.4841 trillion KRW in September last year. This reflects tightened belts through temporary airport rent reductions and management efficiency improvements. A base effect also played a role, as demand from Chinese peddlers surged in January ahead of the Chinese New Year, causing relatively lower sales in February.

However, since the sharp decline in sales due to the COVID-19 pandemic, sales have remained within the 1 trillion to 1.5 trillion KRW range. The number of users was 507,246 domestic and 51,282 foreign, totaling 558,528. Although the number of foreign users increased by about 100,000 compared to February (458,022), when foreign users decreased, the figure has fluctuated between 340,000 and 640,000 since February last year when COVID-19 began in earnest. In January last year, just before the full impact of COVID-19, the number of domestic duty-free shop users was 3.84 million, and duty-free sales were 2.0248 trillion KRW.

The duty-free industry is hopeful for the resumption of overseas travel after vaccination, including the promotion of vaccine passports. This year, profitability is expected to improve due to eased rent burdens at Incheon Airport, and with the resumption of global travel from next year, sales are expected to recover to pre-pandemic levels.

However, for the time being, they have no choice but to expand sales focused on domestic customers. Duty-free shops are actively promoting in line with the increase in non-landing tourist flights this month. Following Lotte Duty Free, Shilla Duty Free will also operate charter flights for non-landing tourist flights this month.

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