Shinsegae duty-free branch posts first monthly profit

Industry

Shinsegae duty-free branch posts first monthly profit

Shinsegae has turned a corner in the duty-free business as its new flagship branch posted its first turnaround last month amid fierce competition, company data showed Wednesday.

Shinsegae DF, the retail chain’s affiliate in charge of its duty-free business, said the Myeongdong branch had 1.2 billion won ($1.05 million) in operating profit in January, and 75 billion won in sales.

The company said in a statement that it is the first month that the store showed in the black, nine months after its opening. Shinsegae DF reported an operating loss of 12.5 billion in the fourth quarter.

Hanwha Galleria, an affiliate of Hanwha Group, logged an operating loss of 43.8 billion won in 2016, with its staff opting to reduce their salaries. Rival Doota Duty Free Shop, run by Doosan Group, is estimated to have lost 30 billion won last year.