April 19, 2024

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[THE INVESTOR] Korean duty-free store operator Lotte Duty Free announced on Aug. 21 that it has signed an agreement to acquire five outlets of Australia-based JR Duty Free.

“This agreement will help Lotte Duty Free to expand outside Asia,” Lotte Duty Free CEO Jang Sun-wook said in a statement. “We plan to diversify our business portfolio to become a global leader in the duty-free industry.” 

Lotte Duty Free is currently the second largest duty-free operator globally, posting around 4.7 billion euros (US$5.46 million) in sales, following Swiss firm Dufry, which posted sales of 7.2 billion euros last year.

The five stores include four located in Australia -- at Brisbane International Airport, Canberra International Airport, Darwin International Airport and Melbourne 185 Swanston Street -- and Wellington International Airport outlet in New Zealand. Lotte Duty Free declined to state the sales figure of the stores at the moment due to the non-disclosure agreement it has signed.

According to the company, Lotte Duty Free will officially start operating the stores before the end of this year.

Before the acquisition, JR Duty Free operated 14 outlets in four countries, including Australia, New Zealand, Israel and Tahiti, posting sales of 670 million euros in 2016.

By Song Seung-hyun (ssh@heraldcorp.com)