April 27, 2024

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[THE INVESTOR] Korea’s two largest duty-free operators are mulling bids to run outlets at Hong Kong International Airport, according to the two companies on Jan. 17.

Although both Lotte Duty Free and The Shilla Duty Free held back from confirming that they would be submitting bids, both said that they are “positively considering” tenders.

“We are actively pursuing overseas expansions, and have the highest overseas sales of all Korean duty-free operators,” said a spokesman for Hotel Shilla, which runs The Shilla Duty Free.

Hong Kong International Airport is currently accepting bids through February for duty-free outlets in the liquor and tobacco, and perfume, cosmetics and fashion accessories categories. Currently, the three anchor concessions -- liquor & tobacco, perfumes & cosmetics, and airside general merchandise -- are all held by Hong Kong retailer DFS.

The tender includes eight liquor & tobacco stores totaling 3,400 square meters, and six perfume & cosmetics and fashion accessories stores totaling 3,300 square meters.

According to the Moodie Davitt Report, an industry tracker specializing in airport consumer services, all of the bidders that took part in Hong Kong International Airport’s 2012 bid are “likely to turn up again” for this bid, including China Duty Free Group and King Power Group Hong Kong. Two bidders from 2012 have been acquired by Swiss-based industry leader Dufry, which may also bid.

Hong Kong International Airport is one of Asia’s major hub airports alongside Incheon International Airport and Changi Airport in Singapore. It served 68.5 million passengers in 2015. 

By Won Ho-jung/The Korea Herald (hjwon@heraldcorp.com)