The Shilla Duty Free, operated by South Korea’s Hotel Shilla Co., said Tuesday that it has extended its concession contract for the duty-free business at Singapore’s Changi Airport for four more years.

The Shilla Duty Free has been running cosmetic and perfume stores at the Changi Airport since 2014. The latest extension will allow it to continue its operations until March 2028, marking a total of 14 years at the renowned airport.

The extended concession covers 22 stores spanning across the four terminals of Changi Airport, with a total area of about 7,700 square meters.

The Shilla Duty Free plans to introduce more than 20 new brands in addition to the existing 130 beauty brands currently available.

The company also aims to create immersive experiences for travelers by partnering with global beauty brands to open pop-up stores and launch new products within the airport’s duty-free zone.

The Shilla Duty Free had previously received positive feedback for operating the world’s first duplex beauty complex store at Changi Airport.

The contract extension signifies a stable future for The Shilla Duty Free’s international sales.

The company’s overseas business is divided into three locations-Singapore, Hong Kong, and Macau, with Singapore and Hong Kong each contributing about half of the international revenue.

Despite a significant drop in sales after the Covid-19 pandemic, with international sales hovering around 1 trillion won ($750 million) per year before the pandemic, the Changi Airport concession continues to generate substantial revenue.

Changi Airport has been steadily recovering its passenger numbers since the pandemic’s peak, with about 5.15 million passengers in August, on its way to quickly regaining the pre-pandemic annual figure of 68.3 million passengers recorded in 2019.

Commenting on the contract extension, Lee Jae-wan, head of The Shilla Duty Free’s Singapore branch, expressed his commitment to providing a world-class shopping experience, saying, “We will continue to deliver the highest level of shopping experiences in cooperation with our brand partners.”

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]