The Korea Customs Service (KCS) has named The Shilla Duty Free, Shinsegae Duty Free and Hyundai Department Store Duty Free as the victors of the general enterprise concessions in the Incheon International Airport duty free tender.
The three South Korean travel retailers will between them share the five major contracts, after being shortlisted by Incheon International Airport Corporation (IIAC) last month a in the first of a two-part patent examination.
In a KCS notice seen by TRBusiness, the perfume, cosmetics and liquor & tobacco concessions have been assigned to The Shilla Duty Free (DF1) and Shinsegae Duty Free (DF2).
The Shilla Duty Free scooped the fashion, accessories and boutique lease (DF3) alongside Shinsegae Duty Free (DF4), while Hyundai Department Store Duty Free picked up the luxury boutique concession (DF5).
As expected, Kyung Bok Kung Duty Free (DF8) and City Plus Duty Free (DF9) were selected as the operators of the all items packages designated to small and medium-sized businesses.
Qualified bidders had been invited to submit proposals for 10-year contracts covering a total of seven business licences: five for general enterprises and two allocated to small and medium-sized companies, spanning a total commercial footprint of more than 24,000sq m.
In March, it surfaced that Shinsegae Duty Free and The Shilla Duty Free could be in line to divide between them four packages (DF1, DF2, DF3, DF4), as IIAC sought to appoint multiple business operators in the first of a two-part patent evaluation process.
In DF5, Shinsegae Duty Free was shortlisted alongside The Shilla Duty Free, with (eventual victor) Hyundai Department Store Duty Free in the mix too.
Fellow bidders Lotte Duty Free and China Duty Free Group dropped out of the race.
The new concession leases are set to begin in July.
For more background on the tender, see the below links and the TRBusiness May Asia Pacific edition, available soon…