Strong fourth quarter propels Shinsegae Duty Free to $3.8bn total sales in 2019

By Luke Barras-hill |


Shinsegae Duty Free’s shopping complex in Busan Centum City has faced challenges.

Total sales at Shinsegae Duty Free notched KRW4.5tn ($3.8bn) in 2019, TRBusiness has been told.

The result confirms correct this publication’s full-year forecast of close to $4bn, which was reported last month and via an exclusive interview in the January edition.

In February, the South Korean travel retailer posted its Q4 and full-year earnings for the 12 months ending 31 December.

According to an investor relations document, *net sales hit KRW3,128bn (+55%) due to impressive sales yields at its downtown shops, including Myeongdong (+45.9%).


Operating profit recorded a big jump (+74%) to KRW112bn.

Net sales in Q4 totalled KRW868bn (+34.6%) while operating profit for the quarter climbed back into the black with a strong performance to reach KRW71bn (+71%).

One-off profit gains were noted to have been achieved as a result of changes to lease accounting and patent commission rates, although the business suffered an impairment loss of KRW312bn.


Click to enlarge. Source: Shinsegae Group IR presentation.

During a recent interview with TRBusiness in Seoul, Hong Seok Ho, Senior Vice President, Shinsegae Duty Free Merchandising Division reflected on a ‘meaningful’ 2019 that produced net contract gains from Lotte Duty Free’s former non-L&T concessions at Incheon International Airport Terminal 1.

This year, Shinsegae Duty Free is projecting sales growth of more than 10% as it seeks to consolidate and build on its number three position in an overheated Korean duty free market dominated by Lotte Duty Free and The Shilla Duty Free.

To read the full interview, click here to subscribe.

*Disclosure note: Net sales are for accounting purposes and differ from the total revenue figure declared to the Korea Customs Service.


‘Go further with collaboration’, hear attendees

TR Sustainability Week 2023 live sessions kicked off on Tuesday* (5 September) with keynote...


Heinemann seals Ryanair inflight contract extension

Gebr. Heinemann has extended its contract with low-cost carrier Ryanair to operate its inflight...


Bacardi, ecoSPIRITS and Carnival Cruise Line team up to cull glass

Bermuda-based spirits company Bacardi has launched a new initiative to bring closed-loop...

image description

In the Magazine

TRBusiness Magazine is free to access. Read the latest issue now.

E-mail this link to a friend