What: Lotte opens its first location in Australia after not having opened any international store in 2 years.

Why it is important: Now that airports are crammed with operators, Lotte seems to export the very Asian concept of city centre duty free stores. In Europe, only one location (Venice) has such a feature. Could that be a new threat to department stores in iconic locations?

South Korean travel retailer Lotte Duty Free has opened its first store in Sydney, on a total surface of 3,200 square metres and 3 levels, at the heart of the retail precinct. Lotte has not opened a new store outside of South Korea since 2020 with its Singapore Changi Airport location.

Lotte plans to become largest Australia duty-free store operator with a turnover target of AUD $790mn (the total Australian duty free market was valued at AUD $800mn pre-Covid).

Instead of having opened in the airport itself, where Heinemann has the main retail concession, the city centre duty free store has been thought to be a destination per se, therefore with an inviting concept and with the target to be seen as a regular store by local customers too. To sustain that approach, Lotte is introducing brands that are new to the Australian market.

Lotte resumes global growth with first steps in Australia