SINGAPORE - South Korea's Lotte Duty Free will take over DFS Group's liquor and tobacco stores at Changi Airport in 2020, marking the first time the key concession will use a new operator.
The contract for the six-year term will start on June 9, 2020. The contracts covers all 18 liquor and tobacco stores across Changi Airport's four terminals, with a total retail space of 8,000sqm.
The move came after DFS Group, who has been selling duty-free liquor and tobacco at Changi Airport for 38 years, announced that it will not renew its concession.
Changi Airport Group (CAG) announced on Oct 24 that it awarded the concession tender to Lotte, who presented the "strongest and most compelling proposal" with "strong omni-channel and marketing ideas which will propel CAG's travel retail strategy forward".
"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," said Ms Lim Peck Hoon, executive vice president of the commercial division at CAG.
"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," she added.