The Shilla Duty Free has won Incheon International Airport Corporation’s (IIAC) Terminal 2 Perfumes & Cosmetics (DF1) concession while Lotte Duty Free has picked up Liquor, Tobacco and Packaged Foods (DF2).

Meanwhile, the three small and medium enterprise (SME) contracts will be operated by SM Duty Free (DF4), Entas Duty Free (DF5) and CityPlus (DF6), according to an announcement from the Korea Customs Service (KCS).

Both Lotte Duty Free and The Shilla Duty Free were were named as preferred bidders for the key concessions last week, while the remaining T2 fashion and miscellaneous merchandise lot (DF3) was retendered at a discounted 10% MAG after receiving no bids, as reported by TRBusiness.

The bid deadline for DF3, which spans 4,889 sqm, is the 10 May, said a source close to the matter.

In a statement reacting to the win, a Lotte Duty Free spokesperson said: “Lotte Duty Free won the Liquor, Tobacco and Packaged Goods concessions, which are the core categories of [the] airport duty free business. LDF has the know-how which is built through 16 years of operating in Incheon International Airport since the first duty free concessions in 2001.

“We will operate the duty free store in T2 successfully through the synergy from integrated operations with [the] T1 business. Based on this, we will boost our advance into the global market.”

WINNING BIDS 

The results conclude the two-stage tender process overseen by the KCS following a previous dispute with IIAC over the selection of the winners.

Bids for the contracts totalled approximately KRW204bn ($180.5mn) in first year MAGs, the source confirmed to TRBusiness.

In the general enterprises category, The Shilla Duty Free offered KRW100bn ($88.5mn) for the six perfume and cosmetics stores covering 2,105 sqm (DF1).

Lotte Duty Free pledged KRW84bn ($74mn) to scoop eight liquor and tobacco outlets spread over 1,407 sqm (DF2).

In the SME category, SM Duty Free was named with a winning bid of KRW9.5bn ($8.4mn), covering two outlets over 825 sqm (DF4); Entas Duty Free offered KRW8bn ($7.1mn) for one unit spanning 741 sqm (DF5); and CityPlus offered KRW2bn ($1.8mn) for two shops covering 241 sqm (DF6).