Brisbane Airport Corporation (BAC) has named incumbent retailer Lotte Duty Free as the victor in its competitive tender to operate a 10-year duty free concession at the airport.

Lotte Duty Free initially commenced business at the Australian airport’s International Terminal in March 2019.

The new lease will commence from 1 February 2024. A major terminal development set to take place during the 10-year period will see a doubling of the duty free footprint.  

There are three distinct phases to the expansion project, which will see the existing 2,795sqm space expand dramatically. 

The project will see the introduction of a 3,900sqm Departures store, a 1,056sqm Arrivals store, a ‘Last Chance’ shop, and a 38sqm atrium area. 

Additional space will allow for category growth across technology, food, and confectionery. 

A focus on local brands and produce will result in a retail emphasis on the best of Queensland. 

The expansion will see Lotte employ 35% more staff across the terminal. 

In addition, Lotte is planning on using its Korean headquarters to promote tourism to Brisbane and Queensland.

The Brisbane International Terminal transportation project is part of a wider AU$5 billion investment. An RFP will be released in early 2024 for operators in specialty, food and beverage, news and books and foreign exchange. 

Brisbane CEO: Lotte a ‘great partner’

“Lotte Duty Free is clearly aligned to our values of communication, care, courage and collaboration, and to our sustainability focus, with sustainable design elements included throughout the future store and a focus on waste management,” said Gert-Jan de Graaff, Brisbane Airport CEO.

“This alignment, coupled with an incredibly exciting store concept showcasing the future of duty free retail, and a commitment to evolve the customer experience over time, makes them a great partner for Brisbane Airport over the exciting decade ahead as the world comes to visit.” 

Martin Ryan, Executive General Manager of Commercial, Brisbane Airport, added: “We were incredibly impressed with the calibre of responses we received to our duty free Request for Proposals (RFP), with the operators clearly as excited as we are about the growth and possibilities at Brisbane Airport. 

“The key criteria we looked at as part of the process was around four pillars – evolving, welcoming, sustainable and place. Lotte Duty Free not only expertly addressed these criteria, but also impressed in the areas of technology and innovation, new brands, experiential retail and creating a space which is ‘uniquely Brisbane’.  

“We are excited about some Australian first initiatives in the store design and what our teams can deliver together over the life of the partnership.”  

Ju Nam Kim, Lotte Duty Free CEO, added: “The award of a new 10-year term at Brisbane Airport will be a stepping stone for Lotte Duty Free to be Oceania’s number one duty free operator. 

“As a global travel retailer, Lotte Duty Free will continue to pioneer new markets with active investment.”   

Steve Timms, Lotte Travel Retail Oceania CEO, commented: “Our renewed partnership with BAC will create a truly amazing retail experience worthy of Brisbane’s incredible future. 

“There is nothing in the Brisbane store design that has similarity to any other place. 

“It will be a bespoke design, capturing the flavour of Brisbane. There will be many firsts, we’ve put our imagination to the wheel. 

“We thank BAC for entrusting Lotte Duty Free to bring world best concepts to Brisbane Airport.” 

In January, Lotte was successful in its bid to operate Melbourne Airport’s duty free concession for the next 10 years.