[THE INVESTOR] Chanel is poised to make a comeback at Incheon Airport – in the new Terminal 2 that will open later this month -- nearly three years after its exit in May 2015, according to industry sources on Jan. 3.
Chanel is notoriously cautious with its store location selections, but Shinsegae Duty Free Shop was able to attract the brand half a year after it attained a permit to operate airport duty-free shops.
Chanel store at Incheon Airport in 2015.
In addition to Chanel, Shinsegae plans to open up 170 brands in fashion, watches, jewelry and miscellaneous goods stores, including Gucci, Jimmy Choo and DuPont.
Chanel had previously operated four stores at Incheon Airport Terminal 1, but closed all of them in 2015. The exit was due to disagreements with the duty-free operators on the terms of business.
Industry watchers say Shinsegae’s efforts and the stable relationship it has built with Chanel at its department stores played a critical role in convincing Chanel to open in Incheon Airport again. The lower rental fees -- it‘s about 30 percent cheaper to rent out a Shinsegae duty-free shop -- also helped persuade Chanel.
By Alex Lee (firstname.lastname@example.org)