Lotte Duty Free reveals Indonesian expansion
Apr 25, 2014
New duty-free shops are planned for Soekarno-Hatta terminal three and Bali Ngurah Rai International airports
Korean travel retailer Lotte Duty Free is to open two more duty-free shops in Indonesian airports according to local media reports.
Speaking at a press conference on Wednesday Lotte Duty Free president director Kim Tae-ho revealed plans for further outlets in Soekarno-Hatta International terminal three and Bali Ngurah Rai airport. Construction of the Soekarno Hatta T3 outlet could begin this year or early next. Discussions concerning Bali Ngurah Rai are ongoing.
The retailer has been operating at Soekarno-Hatta International terminal two, its first overseas outlets , since January 31 2012. Lotte Duty Free runs two shops― Shop A and Shop B― covering 880sq m. Shop A offers core items such as perfumes and cosmetics, liquor and tobacco and souvenirs, while Shop B consists of bags, accessories and gifts and standalone branded boutiques from the likes of Montblanc, Longchamp, MCM, Tumi and Coach― the latter appearing in an Indonesian airport for the first time in a boutique format. DFS Group also operates around 5,000sq ft of duty-free space at the airport. Lotte Duty Free also opened its first overseas downtown duty-free stores in Jakarta last June in the 90,000sq m Ciputra Mall.
Kim said: “Indonesia is one of Lotte Duty Free’s main destinations outside South Korea. Soekarno-Hatta is always busy with travellers. The [Soekarno-Hatta] outlets were our first outside Korea because Indonesia has lots of potential and is a promising market.”
Passengers numbers at the airport reached 60.13m last year, almost three-times its annual capacity of 22m.
Meanwhile Lotte Duty Free vice-president and CEO Lee Won-Joon has assumed the role of Lotte department store chain head. Lee, who has served as Lotte Duty Free vice-president and CEO since 2012, replaces Shin Heon, who is under investigation amid allegations of bribery. Lee Hong-Kyun, who has been part of the duty-free division since joining the company in 1982, takes over as duty-free unit CEO.