The Shilla wins Macau duty-free concession
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The Shilla has won the race to operate one of the two Macau duty-free concessions at the territory’s international airport.
The five-year agreement allows the firm to operate half the airport’s duty-free space, a roughly 1122sqm area at the north departure level airside of the passenger terminal. The firm has run some duty-free services at the airport since 2014 in cooperation with Hong Kong duty-free retailer Sky Connection. The new concession has been awarded to Shilla alone.
Aggregate revenue on the space is likely to approach US$600 million over the course of the contract.
Stores at the new area are expected to focus on Korean beauty products targeted at Chinese travelers.
“We have been sharpening our edge on beauty as customers have been recognizing us as a beauty powerhouse,” said a Shilla spokesperson to TRBusiness. “We are launching exclusive products and collaborating with new media.”
Shilla now has five international locations that also include Singapore, Hong Kong, Phuket and Tokyo.
Questions & Answers
Q.What is the duration of The Shilla’s new duty-free agreement at Macau International Airport?
What is the duration of The Shilla’s new duty-free agreement at Macau International Airport?
The Shilla has secured a five-year agreement to operate its share of the duty-free concession. This allows them to run half the airport's duty-free space for that period.
Q.Will The Shilla be operating its new Macau duty-free concession independently?
Will The Shilla be operating its new Macau duty-free concession independently?
Yes, the new concession has been awarded solely to Shilla. Previously, they had run some services at the airport in cooperation with Hong Kong retailer Sky Connection since 2014.
Q.What will be the primary focus of the stores in The Shilla's new duty-free area?
What will be the primary focus of the stores in The Shilla's new duty-free area?
Stores in the new 1122sqm area are expected to concentrate on Korean beauty products. These products are specifically targeted at Chinese travellers visiting the airport.
Q.What is the estimated total revenue for the duty-free space over the contract's term?
What is the estimated total revenue for the duty-free space over the contract's term?
Aggregate revenue on the newly acquired duty-free space is projected to reach approximately US$600 million. This figure applies over the entire five-year course of the new contract.
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