The Korean powerhouse is to open its first Japanese outlet at Kansai International airport

Korean travel retailer Lote Duty Free is to open its first Japanese outlet next year as part of its global expansion project according to local media reports. According to the Nihon Keizai Shimbun newspaper the retailer will open its first shop in the country inside Kansai International airport as early as this year.
Other reports suggest the Korean powerhouse will run a store around 330sq m in size until March 2020 under the brand name “Lotte Duty Free by KAA”. It is understood that the store will be mostly stocked with Korean cosmetics brands which have become increasingly popular among Chinese tourists. The new outlet will be the first Korean duty-free shop in a Japanese airport, where the number of international passengers reached a record 5m in 2013 driven by the weak Japanese yen and increased number of budget airlines.
A Lotte spokesperson told Yonhap News that the store could even be open by September. “Lotte Duty Free Shop and Kansai Airport Agency will co-operate a store at Kansai International airport, with the store opening scheduled for September 4.”
This latest development follows the recent announcement of Japanese government plans to double the number of tax-free shops in the country to around 10,000 by 2020 in time for the Tokyo Olympic and Paralympic games.
DFNIonline is seeking clarification from airport and retailer and will bring you more as the story develops.
DFNIonline commented: Lotte Duty Free already runs overseas stores in Singapore, Indonesia and Guam and is currently vying for the much-coveted Sydney airport duty-free contract so expansion into Japan would represent another key milestone in its global expansion strategy. At home, its main focus is the upcoming Seoul Incheon airport duty-free tender which DFNIonline understands could be issued anytime between now and September.
The awarding of the recent Jeju International airport duty-free tender to Hanwha Galleria subsidiary, Hanwha Timeworld, must have come as frustrating news for Lotte—the previous incumbent did not participate in the tender in support of government regulations designed to give smaller-medium-sized players more opportunity to shine in the airport arena, only to see the contract awarded to Hanwha Timeworld, a conglomerate in its own right.
Therefore, it comes as no surprise that Lotte is focusing a majority of growth efforts on foreign expansion.