Lotte takes over concessions at Singapore’s Changi airport
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South Korean duty-free retailer Lotte has formally taken over the liquor and tobacco concessions at Singapore’s Changi Airport from DFS Group.
Construction of the new stores are likely to begin once the island’s current “circuit-breaker” restrictions are relaxed in the wake of the continuing coronavirus outbreak. Before this period the firm will trade via the online platform iShopChangi.com.
Lotte won the concessions last year in a tender process following the withdrawal of LVMH-owned DFS Group after 40 years at the airport. DFS said continuing to sell alcohol and tobacco at Changi Airport was not commercially viable, but it will continue to operate fashion stores there.
The new Lotte outlets will be operator’s largest duty-free business in Asia Pacific, offering more than 3000 choices of wines and spirits, including exclusive limited-edition whiskeys and cognacs.
A high-tech tasting bar and immersive experience zones are likely to be features of the new stores.
“Apart from a complete revamp of store designs, passengers can also look forward to an omnichannel experience as we integrate a seamless brick-and-mortar shopping experience with e-commerce,” said Changi Airport Group executive VP Lim Peck Hoon.
Lotte has been awarded the concession for roughly 8000sqm of retail space at the airport for six years, ending June 8, 2026.
Questions & Answers
Q.What reason did DFS Group give for ending its liquor and tobacco concessions at Changi Airport?
What reason did DFS Group give for ending its liquor and tobacco concessions at Changi Airport?
DFS Group stated that continuing to sell alcohol and tobacco at Changi Airport was not commercially viable. The company had held the concessions for 40 years before withdrawing from the tender process.
Q.How will Lotte operate its concessions before the new physical stores are constructed?
How will Lotte operate its concessions before the new physical stores are constructed?
Before construction of the new stores begins, Lotte will trade via the online platform iShopChangi.com. Store construction is expected to start once island-wide circuit-breaker restrictions are relaxed.
Q.What is the duration and size of the new concession awarded to Lotte at Changi Airport?
What is the duration and size of the new concession awarded to Lotte at Changi Airport?
Lotte has been awarded the concession for approximately 8000 square metres of retail space. This agreement is for a six-year period, concluding on June 8, 2026.
Q.What features are planned for Lotte's new duty-free stores at Changi Airport?
What features are planned for Lotte's new duty-free stores at Changi Airport?
The new Lotte stores will offer over 3000 choices of wines and spirits, including exclusive items. Features are likely to include a high-tech tasting bar and immersive experience zones, alongside a complete revamp of store designs.
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