SINGAPORE: From June next year, South Korea's Lotte Duty Free will take over DFS Group's liquor and tobacco stores at Changi Airport, making it the first time a new operator will helm this key concession.
The move comes after DFS Group - which has been selling duty-free liquor and tobacco at Changi Airport for 38 years - announced in August it will not renew its concession.
AdvertisementAdvertisementChangi Airport Group (CAG) announced on Thursday (Oct 24) that it awarded the concession tender to Lotte, who presented the "strongest and most compelling proposal" with "strong omni-channel and marketing ideas which will propel CAG’s travel retail strategy forward”.
[h=3]READ: Duty-free retailer replacing DFS at Changi Airport has to up its game, say analysts[/h]The contract awarded to Lotte is for a six-year term commencing on Jun 9, 2020. The tenancy contract covers all 18 liquor and tobacco stores across Changi’s four terminals, spanning more than 8,000 sqm of retail space.
“Lotte put forth the strongest and most compelling proposal overall. It is aligned with CAG’s vision to offer passengers a seamless omni-channel retail experience and new retail-tainment initiatives leveraging smart technologies" said Ms Lim Peck Hoon, executive vice president of the commercial division at CAG.
AdvertisementAdvertisement"Lotte also demonstrated a keen understanding of the market environment with a sound business plan supported by a competitive financial bid and backed up by solid business fundamentals,” she added.
[h=3]READ: TAFEP looking into DFS Group's retrenchment exercise after dozens laid off[/h][h=3]READ: DFS offers retrenched employees better severance deal, but some say it's not enough[/h]All liquor and tobacco outlets across the four terminals will be rejuvenated with fresh designs when Lotte begins operations, said CAG, while the duplex store at terminal three will have its facade completely revamped to maximise visual impact and visibility.
All Lotte stores will also have curated zones that feature the latest products in the market, as well as experiential activities such as personalised products like whiskey-blending, said CAG.
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