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Shilla to expand duty-free operations in Singapore
Publication Date : 09-01-2014
The Shilla Duty Free Shop will operate the cosmetic and perfume section inside Changi Airport duty-free zone in Singapore from October, Shilla Hotel, the retailer’s parent company, said Wednesday.
Shilla won the deal to operate a total of 20 stores at terminals 1, 2 and 3, as well as terminal 4, which will be completed in around 2017. The contract is valid until Sept 30, 2020.
Shilla expects 600 billion won (US$561 million) in sales there next year. The company has already been running part of the fashion zone since August 2012 and two watch stores since January last year at the Singaporean airport.
“We have suggested the creation of a new business model, taking advantage of Samsung’s IT and mobile technology. We are also planning to establish a ‘hallyu cosmetic zone’ introducing Korean small and medium-sized companies’ cosmetic goods. The Singaporean airport liked the idea,” a Shilla official said.
The company’s know-how in running stores in Incheon International Airport, the world’s most profitable duty free zone, also helped the company win the deal, he added.
Shilla, the world’s seventh-largest duty free store operator, recording $1.7 billion sales in 2012, is hoping that the deal will help the company enter the world’s top three, which are currently the US’ DFS group, Switzerland’s Dufry and Germany’s Gebr. Heinemann.