South Korean operator Shinsegae Duty Free is looking for 30% revenue growth in 2017 across all duty free operations, according to Merchandising Division Senior Vice President, Hong Seok Ho.

 

Hong (pictured below) also tells TRBusiness in an exclusive interview that total duty free revenue of plus-$850m is being targeted next year. Of this, the Seoul downtown store is expected to account for at least 50% of total turnover.

 

“The Seoul downtown duty free pie will grow, but there are four new players and licenses this year,” Hong remarked. “Lotte World and WalkerHill stores will close, so that share will go to someone else.

 

“Also, there will be 20-30% Chinese visitor growth this year, so the duty free market will be bigger.”

 

‘BETTER THAN LAST YEAR’

“Since January and February Chinese visitors have been coming back and the number of South Korean outbound travellers has increased; also the Yen has stabilized and is stronger.”

 

He said optimistically: “All the surrounding circumstances are better than last year; and because of the MERS effect last year I think that this year will be better.

 

“For 2016, I would say there should be at least 15% growth for South Korea’s duty free industry.”

 

Shinsegae has recently expanded its duty free operations in Busan on South Korea’s east coast with the opening of its new downtown duty free store in the city’s Centum commercial complex.

 

 

Shinsegae opened its new downtown duty free store in the six-storey Centum Site B complex on 1 March, closing its original Paradise downtown duty free shop the previous evening.

 

“Busan’s traditional shopping centre is moving to Centum City,” said Hong.

 

Read the full-length interview in the May issue of TRBusiness magazine which can be picked up at the TFWA Asia Pacific Exhibition and Conference or through subscription here.