Incheon International Airport Corporation’s (IIAC) ‘unprecedented marketing and infrastructure support’ ensured Entas Duty Free successfully opened its first arrivals duty free shop on time, Chief Executive David Yu has told TRBusiness.

Entas Duty Free and SM Duty Free inaugurated South Korea’s maiden duty free arrivals stores on Friday in a landmark occasion for Incheon International Airport.

“Incheon International Airport Corporation gave us only six weeks to complete the store, but we are very happy with the outcome,” said Yu.

“Terminal 2 arrival passenger numbers will be about eight million this year and IIAC will continue to re-allocate additional airlines from Terminal 1 to Terminal 2 this year. This is good news for us.”

FIFTH DUTY FREE SHOP

The 326sq m shop operated by Entas Duty Free is its sole duty free arrivals shop at the new Terminal 2, which is undergoing a phased expansion.

It is the South Korean travel retailer’s fifth duty free shop, adding to its departures presence at Incheon Terminal 1 (L&T) and Terminal 2 (mixed category), a downtown Incheon shop and departure outlet at Incheon Seaport.

SM Duty Free meanwhile unveiled two shops spanning 380sq m at the eastern and western zones of Terminal 1. Both retailers sealed the rights to operate the shops for five years (with possible five-year extension options) in March following a keenly contested tender.

The triumvirate of arrivals shops, which stock a number of products excluding tobacco, were inaugurated by government officials including South Korean Minister of Economy & Finance Hong Nam-ki; Korea Customs Service Commissioner Kim Yung-moon; Chairwoman of the National Assembly’s Land, Infrastructure & Transport Committee Park Soon-ja; and IIAC CEO Koo Bon-hwan.

Entas Duty Free says it expects to hit KRW40bn ($35m) in sales from its T2 shop in year one, with liquor dominating the category split (50%), followed by cosmetics (30%).

SM Duty Free had previously told TRBusiness it is likely to see first-year sales at its two shops reach around KRW70bn ($61m).

Elsewhere, Entas Duty Free is focusing on hitting $180m in sales at its 3,300sq m Paradise City downtown shop at the Paradise City resort in Incheon, which soft-opened in December.

For detailed reports on Entas Duty Free and SM Duty Free, see the May Asia Pacific edition of TRBusiness. Click here to subscribe.