November 30, 2023

SOUTH KOREA. The Shilla Duty No cost and Shinsegae Duty Cost-free are the front-runners for the key company obligation totally free concessions out to bid at Incheon Intercontinental Airport Terminals 1 and 2 following the to start with spherical of assessments by Incheon Worldwide Airport Company (IIAC). Shilla bid greatest on two of the 5 concessions in advance of Shinsegae with the order reversed on the other 3 (see aspects below). 

However, there is nonetheless considerably to engage in for because of to the exclusive two-stage construction of the tender and the fact that a single retailer can only gain one particular offer within just the two groups on present (Team One: DF1 and DF2 Group Two: DF3, DF4, and DF5).

The quick-listed get-togethers (to be announced later on currently) will go ahead to a next spherical of judging performed by Korea Customs Support (KCS). The IIAC scoring is based mostly on a mix of business enterprise plan (60%) and economic present (40%). So far only the fiscal bids have been disclosed.

In the subsequent KCS judging, the economical supply accounts for 400 factors and the organization approach 500, with the IIAC organization plan worthy of another 100.

The Moodie Davitt Report can validate The Shilla Obligation Cost-free topped the money bid for DF1, a 17-store mixture of perfumes & cosmetics and liquor & tobacco shops (see table down below), followed by Shinsegae Responsibility Cost-free, China Responsibility No cost Team and Lotte Obligation Absolutely free in that buy.

For DF2 (16 shops) across the exact same groups, the working purchase was the identical.

For DF3, Shinsegae Responsibility Free of charge made the best monetary offer, ahead of The Shilla Responsibility No cost and China Obligation Absolutely free Team, with the identical purchase applying for DF4. Lotte Responsibility Free of charge bid on neither concession.

For DF5, Shinsegae bid optimum, ahead of The Shilla Obligation Free, Lotte Responsibility No cost and Hyundai Responsibility Free of charge. China Responsibility Free Team did not bid on DF5.

Resource: The Moodie Davitt Report Korean resources. Click on on desk to broaden

Essential speaking points involve the intense strategies of Shilla and Shinsegae and the highly conservative delivers by Lotte Responsibility Free, obviously involved about the long term profitability of the airport company.

China Responsibility Absolutely free Team, which would grow to be the 1st overseas retailer to function at Incheon due to the fact DFS was ousted in the 2007 tender if it gained a agreement, bid with prudence, although seemingly its presence drove up the presents of the two direct candidates, Shilla and Shinsegae.

KCS is envisioned to reveal the winner for every single offer by mid-April. The concessions kick off on 1 July.

Click on right here for our in depth investigation of the tender deals.

The crucial wording, which confirms why neither of the top rated two money bidders for each individual of the concessions, The Shilla Duty Free and Shinsegae Obligation Free, will be awarded additional than one particular contract in team one or two.

Robust fascination has also been demonstrated in the concessions established aside for tiny and medium enterprises (SMEs) with the several gamers getting offered to IIAC earlier this 7 days.

Incumbents Cityplus Obligation Absolutely free and Kyung Bok Kung Responsibility Totally free have bid alongside DS Answer, backed by Korean trend add-ons company Metrocity. ✈

Take note: The Moodie Davitt Report is the industry’s most popular channel for launching business proposals and for publishing the outcomes. If you want to encourage an Expression of Interest, Request for Proposals or whole tender procedure for any sector of airport or other journey-linked infrastructure revenues, just e-mail Martin Moodie at [email protected].

We have a variety of selections that will make sure you reach the widest, most significant-high quality concessionaire/retailer/operator foundation in the field – globally and promptly.

The Moodie Davitt Report is the only worldwide company media to cover all airport or other vacation-related purchaser solutions, earnings-generating and if not. Our reporting involves responsibility totally free and other retail, meals & beverage, assets, passenger lounges, art and lifestyle, hotels, car parking, health-related services, the Online, promotion and related earnings streams.

Make sure you send appropriate content, which includes photos, to Martin Moodie at [email protected] for instant, good quality world coverage. ✈

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