SEOUL: After a full year of operating its three SME retail units at Incheon International Airport, SM Duty Free reported strong sales growth, mainly driven by South Korean customers.
SM Duty Free recorded sales worth US$90m at Incheon Airport in 2016, exceeding original expectations.
The company is looking for double- digit sales growth at Incheon in 2017, despite the anticipated fall in Chinese visitor numbers, following a decision to target the rising number of outbound South Korean travellers.
“We are happy with the Incheon sales figure and the fact that we did not lose money at the airport,” Lee Sun Young, Luxury Brand Team Manager for SM Duty Free Co Ltd’s Merchandising Division told press.
Lee also revealed that SM Duty Free bid for all three SME duty free shop licenses on offer at the airport’s Terminal 2 and was successful in winning the DF4 concession.
As reported, the Shilla Duty Free has won Incheon International Airport Corporation’s (IIAC) Terminal 2 Perfumes & Cosmetics (DF1) concession while Lotte Duty Free has picked up Liquor, Tobacco and Packaged Foods (DF2).
Meanwhile, the three small and medium enterprise (SME) contracts will be operated by SM Duty Free (DF4), Entas Duty Free (DF5) and CityPlus (DF6), according to an announcement from the Korea Customs Service (KCS).
