Chanel says it will leave Lotte Busan & Shilla Jeju; focus on Seoul businesses

By Luke Barras-hill |

Source: Shutterstock/Creative Lab.

Chanel has confirmed it intends to quit its downtown duty free shop operations with Lotte Duty Free in Busan and The Shilla Duty Free in Jeju on 31 March.

In a statement sent to TRBusiness yesterday, Chanel Korea said the decision came ‘after deep and careful consideration and review with respect to our employees as well as overall business sustainability’.

News of Chanel’s suggested intention to exit emerged in Korean media earlier this week, but nothing had been officially confirmed and sources close to the matter told this publication that negotiations between the retailers and the brand to reverse the decision remained ongoing.

FOCUS ON AIRPORT & DOWNTOWN

The Chanel statement continued: “We intend to focus our travel retail operations on Seoul downtown and airport businesses, as shown by the new boutique we opened in the Terminal 1 of the Incheon airport, which enable us to offer our clients the best boutique experience while maintaining our position as a top luxury brand.”

TRBusiness broke the news of Chanel’s store opening with Hyundai Department Store Duty Free at Incheon Airport Terminal 1 last year.

The luxury house marked its return to Incheon T1 after a six-year absence by opening a 405sq m boutique in October amid a flurry of other concession openings at Incheon in the second half of 2021.

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