Lotte Duty Free awarded deal to run liquor and tobacco stores in Changi Airport, launch in June 2020
SINGAPORE — Changi Airport Group (CAG) has awarded its liquor and tobacco concession tender to South Korean company Lotte Duty Free, which will start operations from 9 June next year.
They will replace DFS Group, which in August announced it was not renewing its lease at the airport after almost 40 years of operations there.
The six-year contract covers all 18 liquor and tobacco stores across Changi’s four terminals, spanning more than 8,000 sqm of retail space.
In a press release on Thursday (24 October), the airport operator said passengers at Changi can look forward to the widest range of liquor products and brands housed within the liquor and tobacco stores.
The Liquor and Tobacco duplex store at Terminal 3 will also see a “complete revamp of its store facade” and all stores will have new attractions such as customised whiskey-blending, it added.
“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 CAG’s executive vice president (commercial) Lim Peck Hoon.
“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.”
An evaluation process for the tender closed on 26 August. CAG said the tender drew interest from top travel retailers with international operations and experience.
The tender was Changi Airport’s most significant leasing exercise ever. The last round of tenders were conducted for the liquor and tobacco as well as the perfumes and cosmetics concessions in 2013.
“The transition towards the start of the new concession will be planned carefully with both the incoming and outgoing tenants. Renovation works in the stores will be conducted in phases to ensure that customers continue to enjoy a high standard of service,” said the CAG.
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