South Korean travel retailer Shinsegae Duty Free suffered a 92% fall in sales across its airport business in the first quarter of 2021 year-on-year.

In a results statement, the company reported that sales at its downtown operations had lifted by 35% year-on-year for the period in question.

After suffering a KRW32 billion/$28 million loss in the same period last year, operating profit jumped by 55% to KRW23 billion. Cost-saving measures such as airport rent cuts were a contributing factor.

Shinsegae’s total sales rose by 17.9% year-on-year in Q1 2021 to KRW2,175 billion (net sales: KRW1,320 billion) with gross profit up 18% to KRW724 billion.

Shinsegae Duty Free recently confirmed to this publication the shuttering of the Gangnam store in downtown Seoul from 18 July.

“The Covid-19 pandemic is significantly changing the entire business, especially for the travel retail market,” said a Shinsegae Duty Free spokesperson last month.

“In such a fast-moving situation, it is imperative for us to restructure and consolidate our business to ensure sustainable growth. Thus, after careful evaluation, we have concluded to close our Gangnam store. Most existing stock and inventory will be moved to other stores.”