Lotte Duty Free and The Shilla Duty Free are the preferred bidders for Incheon International Airport Corporation’s (IIAC) Perfumes & Cosmetics (DF1) and Liquor, Tobacco and Packaged Goods (DF2) concessions at Terminal 2.

 

The remaining T2 fashion and miscellaneous merchandise concession (DF3) is set to be retendered this week at a 10% discounted MAG, after there were no initial bidders in the first round, TRBusiness understands.

 

Meanwhile, the preferred bidders for DF1 and DF2 (Lotte and Shilla) have now entered into a two-stage selection process for both concessions that are being overseen by the Korea Customs Service (KCS) licensing committee.

 

The development comes as Lotte Duty Free and The Shilla Duty Free were last week selected by IIAC as preferred multiple bidders for the airport’s Perfumes & Cosmetics (DF1) and Liquor, Tobacco and Packaged Goods (DF2) concessions within its two-stage selection process for operators.

 

At the same time, City Plus has been recommended for the small-medium enterprise (SME) concessions (DF4, DF6), alongside SM Duty Free (DF4, DF5, DF6), and Entas Duty Free (DF5). TRBusiness can confirm that the final bidders for each concession (with the exception of the retendered DF3) are due to be announced at the end of this month.

 

FOREIGN BIDDERS FOR REMAINING LOT?

As reported last year, IAAC said it would welcome foreign bids for its fashion boutique tender at T2 in a bid to aid retailers who have in the past felt ‘disadvantaged’ from bidding for major contracts at the airport.

 

The process for the T2 tender has attracted controversy, following a dispute – reported at the time by TRBusiness – between the KCS and IIAC over selection of the concession winners.

 

IIAC and KCS finally struck an ‘uneasy compromise’ in February on the terms of its T2 duty free RFP, which resulted in IIAC following the aforementioned two-step tender process where it is nominating two retailers for each tender/category package before a final decision is made by the KCS.

 

However, a source had previously told TRBusiness that changes to terms of the tender, as suggested by the Korean Government, make it ‘unfavourable’ to foreign/international bidders.

 

To see an earlier report on the T2 ‘compromise’, including images of the proposed tender packages, click below.

 

https://www.trbusiness.com/regional-news/asia-pacific/incheon-strikes-uneasy-compromise-with-kcs/114889