April 26, 2024
Retail & Consumer
Lotte likely to shut duty-free biz in Incheon
[THE INVESTOR] Lotte Duty Free is considering withdrawing from Incheon International Airport, a company source said on Sept. 4.
Lotte’s possible decision to pull out of the main gateway to Korea is feared to spark a domino effect as other operators demand the airport operator cut rent to help them tide over a tumble in the number of Chinese tourists, their main customers.
“Lotte Duty Free is carefully weighing an option to drop its business unless Incheon International Airport Corp. slashes rent substantially,” a senior company official said. “We have been consistently demanding a rent cut.”
The official said Lotte Duty Free can’t pay rent for the remaining period of a five-year contract due to drastic changes in the business climate, including a plunge in the number of Chinese tourists.
It is the first time that Lotte Duty Free has disclosed the possibility of its withdrawal from Incheon International Airport.
By Alex Lee and newswires (alexlee@heraldcorp.com)
Lotte’s possible decision to pull out of the main gateway to Korea is feared to spark a domino effect as other operators demand the airport operator cut rent to help them tide over a tumble in the number of Chinese tourists, their main customers.
“Lotte Duty Free is carefully weighing an option to drop its business unless Incheon International Airport Corp. slashes rent substantially,” a senior company official said. “We have been consistently demanding a rent cut.”
The official said Lotte Duty Free can’t pay rent for the remaining period of a five-year contract due to drastic changes in the business climate, including a plunge in the number of Chinese tourists.
It is the first time that Lotte Duty Free has disclosed the possibility of its withdrawal from Incheon International Airport.
By Alex Lee and newswires (alexlee@heraldcorp.com)
