What: Lotte Duty-Free has announced that it will not renew its license to operate its COEX store in Gangnam, Seoul. Once it expires, Lotte plots to maximise sales at its remaining stores in Seoul; The Lotte World Tower (Jamsil) and the Myeongdong flagship store.

Why is it important: The number of domestic duty-free shops in the region has fallen from 57 in 2019 (pre-Covid) to now just 48. However, South Korea’s duty-free sales have displayed ‘gradual improvements’ during Q1 2022. This follows a 15% increase in duty-free revenue to US$14.7 billion in 2021, of which approximately 95% was sales to foreign customers.

Lotte also plans to expand its product and brand offering at both the World Tower and Myeongdong flagship whilst strengthening marketing activities for both.

Lotte announces COEX store closure