Fashion
Lotte Duty Free, South Korea’s No. 1 duty-free operator, opened a duty-free store in Tokyo on Thursday to target rising travelers, as part of efforts to expand its global presence.
The duty-free store opened in the upscale shopping district of Ginza, the second following one in the Japanese capital in late January.
Lotte, the world’s No. 3 duty-free operator, said it will strengthen its brand competitiveness in Japan, which attracted a huge influx of Chinese travelers last year.
Lotte chairman Shin Dong-bin and his family, including his mother, wife and son, attended the opening ceremony. His father and corporate founder Kyuk-ho and his elder brother and former vice president Dong-joo did not attend.
The rare family gathering at a public event was seen as an effort to show internal unity as Lotte has been trying to improve its tarnished corporate image following a prolonged succession feud between the founder’s two brothers.
“The duty-free business has created some noise in South Korea, but I hope it to do well,” Shin told Yonhap News Agency during the ceremony. “I think this store is better than I expected.”
Lotte lost its duty-free license in Lotte World Tower in southern Seoul in a November bid, amid the family succession feud and criticism for its dominance in the domestic market.
Shin said his company will open a new tax-free store in Thailand in June, and two more in Japan — Osaka in early 2017 and Fukuoka later that year.
Lotte, the retail giant who runs businesses in Korea and Japan, said the new duty-free shop is targeting 150 billion won (US$131 million) in sales this year and it plans to open additional shops in Japan over the next decade.
Foreign visitors to Japan hit a record high of 19.69 million in 2015, marking the first time since 1970 that inbound travelers surpassed those who headed abroad, according to the Japan National Tourism Organization. Koreans were the biggest tourist group to Japan by nationality, followed by Chinese with 3.78 million.
