Hyundai Department Store Duty Free eyes sales of $1.7 bn, adding Chanel at Incheon

[Photo by Hyundai Department Store Duty Free]

Hyundai Department Store Duty Free is estimated to achieve sales milestone of 2 trillion won ($1.7 billion) this year despite still-standstill in international travel.

According to Hyundai Department Store Duty Free on Sunday, it reported 1.15 trillion won in sales for the first six months, gaining 166.9 percent from the same period a year ago. It expects annual revenue to reach above 2.5 trillion won.

Its revenue kept up growth from 793.2 billion won in 2019 to 1.45 trillion won in 2020 despite absence of tourists and outbound travel.

Its income statement has also improved sharply.

The company’s operating loss nearly halved to 18.9 billion won in the first half from 37.4 billion won a year earlier.

Its tariff-free consumer business expanded as it went on with building economies of scale regardless of pandemic setback.

Last year, Hyundai Department Store Duty Free added two major outlets – inner city shops in Seoul in February and an airport location in September. The duty-free business has been able to raise price competitiveness with scale-up, it said.

The expansion is expected to reap further amid normalization in international travel.

“The overall industry like Lotte, Shilla, Shinsegae is seeing a sales growth of an average 20-30 percent from the previous year with returning Chinese merchants to Korea,” said an industry official.

Another boon is expected from Chanel opening of its boutique at Terminal 1 at the country’s main gateway Incheon International Airport in partnership with Hyundai Department Store’s duty-free name after six years of withdrawal from the airport.

Chanel’s boutique will offer all merchandises except for cosmetics in a space of 405 square meters, nearly doubling the space of the outlet six years ago. It is bigger than the Chanel store at Terminal 2.

Hyundai Department Store Duty Free has been wooing Chanel boutique since last year when it bid for a fashion and miscellaneous concession opening at Terminal 1 in a tight race against the country’s majors Lotte, Shilla and Shinsegae.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]