Lotte to replace DFS Group at Changi Airport next June
For the first time in retail history, there will be a new operator taking over Changi Airport Group's (CAG) key concession tender in liquor and tobacco.
Lotte, part of South Korean retail conglomerate Lotte Group, will be taking over from the DFS Group, which announced in August that it will not retain its duty-free liquor and tobacco concession at Changi Airport when its lease expires next June.
The contract awarded to Lotte is for six years from June 9, 2020.
The tenancy contract covers all 18 liquor and tobacco stores across Changi's four terminals, spanning more than 8,000 sq m of retail space.
In a statement yesterday, CAG's executive vice-president (commercial) Lim Peck Hoon said: "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," she added.
All stores will be upgraded with lifestyle elements and experiential activities, allowing shoppers to look forward to an enhanced retail experience.
Customers can also expect product personalisation services such as customised whisky blends and specially curated zones that will offer the latest and trendiest products in the market.
The Terminal 3 duplex store will also see a complete revamp of its exterior.
CAG said it was not easy choosing a retailer to tender the concession to, as all proposals received were impressive and of high quality.
CAG noted that Lotte is the world's second largest travel retailer in terms of sales turnover and possesses extensive experience in the travel retail industry including in the liquor and tobacco segment.
In addition, with a proven track record of operating at a scale similar to Changi Airport, Lotte possesses deep consumer understanding, the airport group added.
It said: "Lotte has also won multiple awards over the years for its branding, marketing and customer satisfaction."
"The CAG-Lotte partnership will leverage the strengths of both parties to grow the concession at Changi Airport," CAG added.
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