Hotel Shilla lands sales deal at Singapore airportHotel Shilla, the operator of luxury hotels and duty-free stores under Samsung Group, said yesterday it has secured the rights to run perfume and cosmetics stores at Changi International Airport in Singapore.
The rights obtained through an open bidding process will accelerate President Lee Boo-jin’s initiative to expand Hotel Shilla’s business overseas.
“We will operate about 20 perfume and cosmetics stores at Changi International Airport,” said an official from the company. “When the construction of the airport’s fourth terminal is completed in 2017, we will also operate perfume and cosmetics stores there.”
Hotel Shilla has been given the rights to operate the stores from Oct. 1 to Sept. 3, 2020. In 2015, the company said it expects annual sales will reach 600 billion won ($562.6 million) and total more than 4 trillion won for the six years. Business will be carried out by Shilla Duty Free, the travel retail arm of Hotel Shilla and Korea’s No. 2 duty-free operator. Hotel Shilla has two business divisions: hotel operations and travel retail operations.
“We plan to bring in Korea’s small and midsize cosmetics firms that have high-quality and competitive products,” the official said. “This would provide a good example of entering the overseas market together with SMEs.”
Hotel Shilla currently operates Prada and Bottega Veneta stores at Changi International Airport. It also plans to run a combined watch store starting later this month.
By expanding its presence in the overseas market, Hotel Shilla said it aims to become one of world’s top three travel retailers. Currently, it ranks seventh by total sales, behind others including the United States’ DFS Group and Switzerland’s Dufry.
BY LEE EUN-JOO [firstname.lastname@example.org]
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