Lotte Duty Free

Lotte Duty Free ranks third in our 2022 listings, with sales of KRW5,912.3 billion (€4,363 million based on exchange rates at 31 December 2022).

Lotte Duty Free continues to retain its leadership in Korean travel retail, with 2022 gross sales ensuring a share of its home market sales (all channels) of over 28%.

As in 2021, the company benefited from a strong daigou (reseller) business, online sales and support measures from government. From September 2022 this included a rise in the inbound duty free value allowance from US$600 to US$800, and in the alcohol limit for international arrivals from one litre to two. These and other government stimulus measures aimed to accelerate sales growth following the opening of Korean borders from 1 April 2022.

The company has made several gains at home over the past year, winning the Jeju Air inflight retail contract and the departures duty free retail concession at Jeju International Airport, as well as opening upgraded stores at Seoul Gimpo and Gimhae airports. But, clearly concerned about the future profitability of the airport business, the company also placed highly conservative offers for the Incheon International Airport duty free concessions in the bid earlier this year.

In terms of market reach, a key element to the Lotte Duty Free is its continuing expansion overseas. Its victory in the Melbourne Airport duty free tender in January marked a milestone for its regional and international ambitions. A big downtown store opening in Sydney, expansion at Singapore Changi Airport (liquor & tobacco), reopening in Japan (downtown), plus investment in Vietnam underline that growth mindset, and will play a part in dictating the retailer’s positioning in these rankings in future.