Hyundai Duty Free Shop has joined Lotte Duty Free and The Shilla Duty Free as preferred bidders for general enterprise concessions in the Incheon Terminal 1 duty free tender, TRBusiness can confirm.
Operator Incheon International Airport Corporation (IIAC) ended anticipation in January when it tendered eight airside duty free packages, but Perfumes & Cosmetics (DF2) failed to coax any bids after the deadline closed late last month.
In an evaluation document seen by this publication, The Shilla Duty Free and Lotte Duty Free were nominated for the DF3 Liquor, Tobacco and Food and DF4 Liquor, Tobacco and Food packages, respectively, while Hyundai Duty Free has been selected for the DF7 Fashion/Misc concession.
Meanwhile, Grand Duty Free has been nominated for the DF8 All Items package, while City Plus Duty Free and Entas Duty Free retain a foothold by securing positions for DF9 All Items and DF10 Liquor, Tobacco and Packaged Food concessions, respectively.
The chosen bids will now be recommended to the Korea Customs Service and assessments made in accordance with South Korea’s divisive two-stage selection process.
As it stands, Incheon Airport’s retail landscape has seven operators running 12 concessions.
While Hyundai has swooped for DF7 Fashion/Misc at the expense of Shinsegae Duty Free, Lotte Duty Free will likely feel hard done by given it was aiming to claw back substantial concession ground.
However, IIAC’s likely re-tender of DF6 Fashion/Misc (after Hyundai Duty Free emerged as the only bidder) offers another chance for Lotte Duty Free to increase its presence.
Meanwhile, Shinsegae Duty Free told TRBusiness recently that it bid to defend the DF7 contract due to its existing experience in fashion & accessories.
While losing out to Hyundai Duty Free, Shinsegae Duty Free still commands an important (non-contested) perfumes and cosmetics and boutique outlets presence at Terminal 1.
Separately, as reported last week, IIAC has proposed rent cuts for ‘small’ duty free operators only in a move that has drawn criticism in South Korea.
Stay close to TRBusiness for further developments.
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