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%).

PROFIT HIKE IN Q4

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.

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.

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