Incheon Airport expects US$2billion duty free sales again in 2017
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Incheon International Airport says it expects annual duty free sales to reach US$2billion once again in 2017 following the complete remodelling of its 2,753square meter luxury boutique street, Airstar Avenue, at the central area of Terminal 1. Meanwhile the airport expects to open new T2 shops at the end of 2017 following a long and controversial tender process.
The remodelled area which occupies approximately 16 percent of the airport’s duty free concession space (17,074 square meter), includes these 25 top luxury boutiques: Balenciaga, Bally, Bottega Veneta, Burberry, Bvlgari, Cartier, Celine, Coach, Fendi, Ferragamo, Gucci, Longchamp, Louis Vuitton, Marc Jacobs, Miu Miu, Montblanc, Moncler, Omega, Prada, Rolex, Saint Laurent, Tiffany, Tod’s, Tory Burch and Tumi.
The Saint Laurent, Balenciaga and Moncler stores were the most recent additions to the revamped shopping street.
Bum-Ho Kim, IIAC Executive Director of Commercial Marketing, made these comments: “We are pleased to announce the completion of the main terminal’s renovation. Last year, while the area was partially being revamped, the central boutique managed to deliver robust sales of US$224million.
This sales amount covers approximately 11 percent of the total annual sales (US$2billion). As we have now completed the renewal process successfully, we are expecting to provide efficient customer experiences beyond passengers’ expectations, and aim to hit US$2billion sales once more.
Turning to Terminal 2, he added: “Incheon Airport is currently putting its utmost efforts to successfully open duty free shops in Terminal 2, by the end of 2017. “Along with T1 duty free, we will do our best to create a place of which can deliver unforgettable, delightful airport shopping experiences and satisfaction for the passengers visiting our airport.”
Lotte walked away with the L&T concession contract – awarded in May this year – and Shilla took P&C, while the terminal’s fashion tender was rebid.
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).
Questions & Answers
Q.What proportion of Incheon Airport's total duty free concession space is occupied by the newly remodelled luxury boutique street?
What proportion of Incheon Airport's total duty free concession space is occupied by the newly remodelled luxury boutique street?
The remodelled area, Airstar Avenue, occupies approximately 16 percent of the airport's total duty free concession space, which measures 17,074 square meters in total.
Q.Which specific companies were awarded the main concession contracts for the new Terminal 2 shops?
Which specific companies were awarded the main concession contracts for the new Terminal 2 shops?
Lotte was awarded the L&T concession contract, and Shilla took the P&C contract. The fashion tender for Terminal 2 was rebid.
Q.What were the sales figures for the central boutique street during its partial renovation last year?
What were the sales figures for the central boutique street during its partial renovation last year?
While partially being revamped last year, the central boutique street generated robust sales of US$224 million. This amount represented approximately 11 percent of the total annual sales.
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