Changi Awards Liquor & Tobacco Concession to Lotte Duty Free

Changi Airport Group (CAG) has awarded its core-category Liquor & Tobacco concession tender to Lotte Duty Free.

The deal marks the start of a new chapter in Changi Airport’s retail history, as it is the first time a new operator will take the helm of this key concession.

Lotte is the world’s second largest travel retailer in terms of sales turnover, and has extensive concession experience in markets like Australia, Japan, New Zealand, South Korea and Vietnam.

Mr Kap Lee, CEO of Lotte Duty Free, said, “I express my deep gratitude to Changi Airport Group for acknowledging Lotte Duty Free’s strength and strategy. Winning the Changi Airport’s Liquor & Tobacco duty free concession is of great significance in terms of establishing a bridgehead to achieve our vision of “Global No.1 Travel Retail”. Lotte Duty Free will put its continuous efforts to grow as a global brand with Changi Airport.”

Changi will renovate all 18 of its liquor and tobacco stores before Lotte starts operations in June 2020.

Ms Lim Peck Hoon, CAG’s Executive Vice President, Commercial, said, “The Liquor & Tobacco concession is one of the largest at Changi Airport and it presents unique opportunities for marketing innovation and customer engagement. We were deeply impressed with the high quality of the tender proposals received and it was not an easy decision to make. We thank all the parties for their participation. Lotte put forth the strongest and most compelling proposal overall. It is aligned with CAG’s vision to offer passengers a seamless omni-channel retail experience and new retail-tainment initiatives leveraging smart technologies. Lotte also demonstrated a keen understanding of the market environment with a sound business plan supported by a competitive financial bid and backed up by solid business fundamentals.”

This tender was Changi Airport’s most significant leasing exercise since the last round of tenders were conducted for the Liquor & Tobacco and the Perfumes & Cosmetics concessions in 2013. The contract awarded to Lotte is for a six-year term commencing on 9 June 2020. The tenancy contract covers all 18 Liquor & Tobacco stores across Changi’s four terminals, spanning more than 8,000 sqm of retail space. Renovation work in the stores will be conducted in phases.

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