Changi Airport Group (CAG) announced on Oct. 24 that it has awarded its liquor and tobacco concession tender to Lotte Duty Free (Lotte).

According to CAG, Lotte will begin operations in June 2020, immediately after the end of DFS's group's lease.

Six-year contract

The contract awarded to Lotte is for a six-year term commencing on June 9, 2020, and it is Changi Airport's most significant leasing exercise since the last round of tenders were conducted in 2013.

The tenancy contract covers all 18 liquor and tobacco stores across all four of the airport's terminals, spanning more than 8,000 sqm of retail space.

When Lotte starts operations in June 2020, passengers at Changi can look forward to the widest range of liquor products and brands housed within the 18 liquor and tobacco stores.

The Terminal 3 Liquor and Tobacco duplex store will also see a complete revamp of its store façade. In addition, there will be experiential activations such as product personalisation in the form of customised whiskey-blending.

Lotte is the world's second largest travel retailer in terms of sales turnover, and have concession experience in Australia, Japan, New Zealand, South Korea and Vietnam.

DFS announced its withdrawal in August

DFS group, which has been operating at Changi Airport for 38 years, announced in August this year that it is withdrawing from Changi Airport.

Its current lease will expire by June 8, 2020.

According to DFS's Group Chairman and CEO, the decision was made as "staying in Changi was not a financially viable option."

In February 2019, the GST import relief for overseas purchases was reduced.

Later, in April 2019, the allowable quantity of duty-free alcohol that can be purchased by travellers arriving in Singapore was also reduced from three litres to two.

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Top image from Lotte