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SEOUL, Jan. 8 (Yonhap) — Hotel Shilla Co., a South Korean luxury hotel and resort operator, said Wednesday that its travel retail division Shilla Duty Free has secured rights to operate perfume and cosmetics stores at Singapore’s Changi Airport.
Shilla Duty Free will operate the stores for six years from October through September 2020, the company said.
The hotel operator estimated annual sales at the Changi Airport stores would be 600 billion won (US$561.9 million) in 2015.
In August 2012, Shilla Duty Free obtained rights to operate its first overseas store at Singapore’s main gateway for three years starting December of that year.
South Korea’s second-largest travel retailer also secured rights to run two watch stores at the Changi Airport and perfume and cosmetics stores at Malaysia’s Kuala Lumpur Airport in 2013.
Hotel Shilla said it aims to take the No. 3 ranking in the global duty-free market by generating overseas sales of more than 4 trillion won over the next six years.
DFS Group of the United States was the biggest global duty-free shop chain by 2012 sales, followed by Dufry Group of Switzerland, Heinemann Duty Free of Germany and Lotte Duty Free of South Korea. Shilla Duty Free ranked 7th among global travel retailers in 2012.
“With the latest deal in Singapore, sales of overseas duty-free shops are expected to account for 20 percent of the overall sales of our duty-free division,” Hotel Shilla said, adding it will spur overseas business of its duty-free division by forming a logistics hub in Singapore.
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Hotel Shilla to open cosmetics store in Singapore"s Changi Airport
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