Trbusiness. The travel retail Trbusiness. The magazine for global retail and duty free professionals.Shinsegae Duty Free closing Centum City store
By Benedict Evans |
Shinsegae Centum City Department Store is registered as the largest shopping complex in the world.
[UPDATED] Shinsegae Duty Free has announced the closure of its duty free department store in Haeundae District, Busan, as the ongoing economic impact of the Covid-19 pandemic, a weakening Japanese yen, and a drop-off in tourism continue to impact the region.The
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A spokesperson for Shinsegae Duty Free (Shinsegae), said:”Shinsegae Duty-Free Busan store will officially close its operations after its final day of business on January 24. Last Friday, Shinsegae Duty-Free submitted the necessary documentation to the customs office to surrender the store’s license.
The duty free industry in Korea has not yet fully recovered from the impacts of the COVID-19 pandemic. This has been especially challenging for regional duty free shops.
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Additionally , the steep rise in the USD-KRW exchange rate, nearing 1,500 KRW, has undermined the price competitiveness of duty free products, resulting in fewer visitors overall.
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The geographical characteristics of Busan also play a role, as Japanese tourists, who form a substantial customer segment, have decreased due to the weakening of the Japanese yen.
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Similarly, the decline in cruise ship tourists has contributed to the overall slowdown of Busan’s tourism market.
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These factors combined have led to a challenging environment for the duty free business in Busan.
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In this context, we are currently reviewing the potential surrender of the license for the Busan Duty Free Shop.
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