Lotte Duty Free Extends Brisbane Airport Store Operation for 10 Years... Accelerates Overseas Business Expansion

Extension of Brisbane Airport Branch in Australia until 2034
Grand Opening of Singapore Changi Airport Branch
Acceleration of Full-Scale Overseas Business Expansion

Lotte Duty Free has reacquired the next 10-year business license for its Brisbane Airport store in Australia and extended its operation until 2034. Additionally, it plans to accelerate its overseas business by fully opening 19 zones of the Singapore Changi Airport store, which had been partially operating due to the impact of COVID-19.

Exclusive Operation of Brisbane Airport Store Until 2034

Lotte Duty Free Brisbane Airport Store Exterior [Photo by Lotte Duty Free]

According to Lotte Duty Free on the 17th, the company reacquired the next 10-year operating license for the Brisbane Airport duty-free store, whose current contract was about to expire, extending its business until 2034.

Brisbane is the third largest airport in Australia after Sydney and Melbourne, with approximately 3.21 million travelers (PAX) visiting annually in 2019. It is expected that the number of tourists will further increase as it is scheduled to host the 2032 Summer Olympics. Based on exclusive operating rights for all product categories including liquor, cosmetics, and fashion accessories, Lotte Duty Free anticipates generating about 2 trillion KRW in sales over the next 10 years.

Lotte Duty Free secured the business license by presenting differentiated strategies such as stable operational capabilities and experience accumulated as the incumbent operator, renovation plans reflecting Brisbane’s local characteristics in the interior design, and support for enhancing the online duty-free store using DT and IT technologies.

Lotte Duty Free operates a total of six stores in the Oceania duty-free market, including Brisbane Airport, Darwin Airport, Melbourne downtown, Wellington Airport, Sydney downtown, and the Melbourne Airport store, for which it secured the business license this year. The cumulative sales of Lotte Duty Free’s six Oceania stores in the third quarter increased by about 256% compared to the same period last year. Furthermore, with the reacquisition of the Brisbane Airport store license, Lotte Duty Free is set to become the number one duty-free operator in the Oceania region in 2024.

Going forward, Lotte Duty Free plans to gradually expand the store currently operating at about 900 pyeong in the Brisbane Airport departure and arrival halls to a total of 1,550 pyeong. Accordingly, it will strengthen the liquor line centered on wine, a popular item in Australia, and create tasting spaces. In addition, it plans to carry out diverse marketing activities based on collaboration with brands.

Annual Sales Expected to Reach 500 Billion KRW... Grand Opening of Changi Airport Store

Lotte Duty Free, Duplex Store View at Singapore Changi Airport Branch
[Photo by Lotte Duty Free]

In addition, on the 12th, Lotte Duty Free fully opened its Singapore Changi Airport store, which had been partially operating since June 2020 due to the COVID-19 pandemic. It opened a duplex store in Terminal 3 of Changi Airport and began normal operations for all 19 zones of the store. The total area is approximately 8,700㎡ (2,632 pyeong), making it the largest overseas duty-free store operated by Lotte Duty Free.

Lotte Duty Free exclusively sells liquor and tobacco products at Terminals 1 to 4 in the Changi Airport departure and arrival halls, offering a variety of liquor products including globally in-demand single malt whiskies such as Macallan and Glenfiddich, as well as wine, cognac, and vodka. In particular, to provide customers with a unique duty-free shopping experience during their journey, it has enhanced experiential elements by creating tasting spaces using robots and digital technology, and customer lounges equipped with the latest media facilities and rest areas.

Singapore Changi Airport, used by about 70 million people annually, is a representative airport in Asia. Lotte Duty Free first entered this market by winning the duty-free business license at the end of 2019, which had been held by the U.S. company DFS for 40 years. Lotte Duty Free expects to generate about 500 billion KRW in annual sales at the Changi Airport store and plans to achieve its overseas sales target of 1 trillion KRW ahead of schedule.

Lotte Duty Free’s strategy is to dominate the global liquor duty-free market by leveraging its liquor buying power based on the Changi Airport store and Oceania stores. Including the newly opened Changi Airport and Brisbane Airport stores, in 2024, it will establish liquor specialty zones domestically and internationally, securing exclusive products and limited editions to strengthen the liquor category.

Kim Joo-nam, CEO of Lotte Duty Free, said, "Next year, we will achieve a performance turnaround with the normalization of all overseas stores of Lotte Duty Free," adding, "As a global travel retail company, Lotte Duty Free plans to pioneer new markets through active investment going forward."

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