South Korean retailer Hanwha Galleria said Wednesday it aims to raise sales at its Jeju duty-free branch to 90 billion won ($83 million) this year on a continued influx of Chinese shoppers to the country’s southern resort island.
The Hanwha affiliate began operations of its first duty-free store in Jeju last year after winning an operational license to run a 409-square-meter duty-free shop in the island’s sole airport.
The airport branch, which preliminary opened in April last year, has proven to be profitable in its first year of operation, according to the company, which did not provide detailed figures.
“(The branch) logged a profit in the first eight months of its opening,” said Jin Keum-tak, who heads the Jeju store. “An increase in Chinese tourists and differentiated merchandising has raised sales in the eight-month period to nearly 80 percent of the previous operator’s annual sales.”
The venue was formerly ran by retail giant Lotte, which in February won the rights to operate a foreigner-only duty-free shop in the island’s downtown.
Jeju has emerged as a lucrative battle field for retailers, with the island’s duty-free business estimated to reach more than 1 trillion won. (Yonhap)
