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