What: Offering lower rents is not enough to keep duty-free stores open.

Why is it important: The travel industry continues to struggle.

Two major South Korean duty-free operators, Lotte and Shilla, will close their stores at Incheon Airport’s Terminal 1 next month, leaving more empty space at the airport. Both Lotte Duty Free and Shilla Duty Free’s leases expired in August but were extended for an additional six months after new bidders backed out before signing contracts.

Their departure is the latest sign of dwindling fortunes for the aviation and travel industries, which are among those worst hit by the pandemic.

In January last year IIAC began the bidding process for new duty-free store operators, offering lower rents in an attempt to keep shopping at the airport alive. But the airport’s efforts proved insufficient to fend off growing scepticism and uncertainty surrounding duty-free shopping, prompting the search to continue for nearly a year.

Lotte and Shilla close duty-free stores at South Korea’s Incheon Airport