Shilla Duty Free reports significant downturn in downtown operations

By Benedict Evans |

– TRBusiness

The struggles Shilla has faced in its downtown trading have been seen across the South Korean travel retail landscape.

Hotel Shilla, the parent company of Shilla Duty Free, has reported a KRW43.9bn ($31m) in operating losses for the fourth quarter of 2024, with double-digit slides in downtown revenue (-16.4%) and airport revenue (+15.7%) year-on-year.

In Q424, revenue for the travel retail division increased marginally by 0.2% year-on-year to KRW773.5bn ($541m), and Shilla said it was focusing on profitability recovery in response to changes in both the internal and external trading environment.

Shinsegae Duty Free recently announced the closure of its Centrum City mall amidst declining performance, while in June 2024, Lotte Duty Free revealed an ‘emergency recovery plan’ aimed at streamlining the company’s operations and performance via workplace restructures and a reduction in executive salaries.

READ MORE: The Shilla Duty Free invites travellers to ‘Wander The Magic’ at Changi Airport

READ MORE: Singapore Changi registers 14.8% yoy passenger growth in 2024

READ MORE: Interview: Lotte Duty Free CEO Ju Nam Kim on change amid market turbulence

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