Lotte Duty Free Co., a leading duty-free operator in South Korea, is rapidly expanding its overseas presence with a key contract in Australia.

Lotte Duty Free announced on Sunday that it won a bid for a 10-year contract to run its duty-free shop at Brisbane Airport International Terminal in Australia until 2034, with the current contract term with the airport set to end in December.

As a monopoly duty-free store, Lotte Duty Free is forecast to earn more than 2 trillion won ($1.53 billion) in sales from liquor, cosmetics and clothing at the airport for the next decade.

Brisbane Airport, Australia’s third busiest after Sydney and Melbourne, caters to around 3.21 million passengers annually as of 2019. With the upcoming 2032 Summer Olympics slated to be hosted in Brisbane, there is anticipation for a surge in tourism to the region.

Lotte Duty Free has strategic plans to gradually expand its existing 2,975-square-meter store at both the arrival and departure halls of Brisbane Airport, ultimately reaching a total area of 5,124 square meters. The expansion aims to enrich the liquor selection, featuring popular Australian wines, and introduce a dedicated tasting area.

The Seoul-based duty-free services operator has six stores in Oceania. The total sales of these six stores witnessed a remarkable 256 percent increase in the third quarter compared to the same period last year.

In a separate announcement on December 12, Lotte Duty Free said its store at Changi International Airport in Singapore was back to full operation after restrictions in June 2020 in the aftermath of the Covid-19 pandemic.

Boasting a vast area of approximately 8,700 square meters, the Changi Airport store is Lotte Duty Free’s largest international duty-free shop.

By Choi Jae-won and Han Yubin

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