Lotte Duty Free Opens Melbourne Airport Store in Australia... Aiming for Annual Sales of 300 Billion KRW

10 Years of Operations Until 2033
Targeting Annual Sales of 300 Billion KRW After Store Area Expansion
CEO Kim Junam: "We Will Expand Our Hub Airport Business Territory"

Lotte Duty Free announced on the 13th that it held an opening ceremony for its Melbourne Airport store in Australia and expects to achieve annual sales of 300 billion KRW in the future.

The opening ceremony held at the departure hall of Melbourne International Airport in Australia was attended by about 100 key stakeholders, including Kim Joo-nam, CEO of Lotte Duty Free, Rory Argus, CEO of Melbourne Airport Corporation, Josh Bull, Member of the Victorian Parliament, Lee Chang-hoon, Consul General in Melbourne, and Stephan Tims, CEO of Lotte Duty Free Oceania Corporation.

CEO Kim Joo-nam emphasized, "Lotte Duty Free, which has endured the long tunnel of the pandemic, will make a new leap forward based on the successful operation of the Melbourne Airport store in Australia," adding, "We will pioneer our business territory centered on overseas hub airports and become a leading global platform in the duty-free industry."

Lotte Duty Free acquired the business rights for the Melbourne Airport store through a bidding competition with six global duty-free operators in January and took over the store previously operated by Swiss company Dufry on June 1, starting operations. The business period is 10 years, until May 2033. Currently, Lotte Duty Free operates a 3,592㎡ (approximately 1,090 pyeong) store and plans to expand it to 5,634㎡(approximately 1,704 pyeong) by 2027, aiming to become an airport duty-free store with annual sales of 300 billion KRW.

The store interior will incorporate the local lifestyle and unique culture of Melbourne. Design elements will reflect the characteristics of Melbourne’s famous alley attractions such as Hosier Lane, known as the birthplace of graffiti art, Guildford Lane, lush with various plants, and Degraves Lane, famous for its European-style caf? street, to improve the shopping environment.

Lotte Duty Free Melbourne Airport store is a comprehensive duty-free shop handling all categories including cosmetics & perfumes, liquor & tobacco, and accessories & souvenirs. It offers about 390 brands including cosmetics brands such as Est?e Lauder, Dior, Chanel, and Aesop; liquor brands such as Penfolds, famous for Australian wine, Johnnie Walker, and Royal Salute; as well as various local specialties.

According to Melbourne Airport Corporation, the number of international passengers (PAX) in May reached approximately 740,000, an increase of 103% compared to May last year. This figure represents about 87.6% recovery compared to 2019, before COVID-19. With the expansion of international flights, the number of arrivals and departures is expected to increase rapidly.

Meanwhile, Lotte Duty Free opened new downtown stores in Sydney, Australia in May last year and in Da Nang, Vietnam in November. Including the newly opened Melbourne Airport store, it currently operates a total of 14 stores in six countries worldwide. In the first half of this year, sales at six Lotte Duty Free Oceania region stores increased by about 260% compared to last year, showing a recovery trend. The company aims to become the number one duty-free operator in the Oceania region next year.