Lotte extends Brisbane Airport duty-free shop operations until 2034

Lotte Duty Free, South Korea’s largest duty-free business operator, said on Sunday it has extended its operating rights for a duty-free shop at Brisbane Airport in Queensland, Australia for a decade until 2034.

Lotte has been operating an outlet at Brisbane Airport since January 2019.

Under the new contract, Lotte will have exclusive rights to sell liquor, fashion items, cosmetics and other items at the airport.

To make the most of its operating rights at Brisbane Airport, Lotte plans to gradually expand the size of the store from the current 3,000 square meters to 5,100 square meters.

It also plans to strengthen its liquor product lineup, especially popular items such as wine, and set up a tasting corner there.

Lotte’s business extension at Brisbane Airport comes as the dominant Korean player aims to enhance its presence across Oceania, including New Zealand.

Last year, it opened a duty-free shop in downtown Sydney and another at Melbourne Airport this July.

The Melbourne Airport store handles some 390 brands, including cosmetics, perfumes, liquor, tobacco and miscellaneous items.

In Oceania Lotte operates a total of six duty-free shops, including one at Darwin Airport and another at New Zealand’s Wellington Airport.

Lotte Duty Free’s sales revenue in the first nine months of this year rose more than threefold from the year-earlier period.

GLOBAL EXPANSION

An affiliate of Korea’s Lotte Group, Lotte Duty Free has been aggressively expanding its overseas business to become a global leader.

In November 2022, it opened a duty-free shop in Da Nang, Vietnam.

Globally, the company operates 13 shops in six countries with its flagship stores largely in the Asia Pacific, targeting Chinese travelers, the world's largest spending group at duty-free shops.

In mid-December, Lotte held a grand reopening ceremony for its store at Changi Airport in Singapore after partially closing the shop over the past three years.

The flagship Changi Airport store at Terminal 3 – Lotte’s largest duty-free shop overseas – began operations in June 2019 after obtaining the operating rights from DFS Group but remained partially idle due to the COVID-19 pandemic.

“We expect an earnings turnaround in 2024 with all our shops across the globe running normally,” said Chief Executive Kim Ju-nam. “As a global travel and retail company, we’ll spare no expense to explore new markets.”

Write to Young Chan Song at 0full@hankyung.com

In-Soo Nam edited this article.