SEOUL, KOREA - Despite the prolonged recession, duty-free shops posted a record-high performance last year in excess of 10 percent in annual sales revenue growth.

 

Although the number of Japanese tourists has declined due to the yen's weakness, Chinese visitors have more than made up for the shortfall. Although the sales growth rate has slowed from over the 20-percent level in the past, this is far better than any other retailers including department stores and discount outlet operators that saw their sales revenue fall last year.

 

Lotte Duty Free Shop said on February 11 that its 2012 preliminary sales revenue figure was 3.55 trillion won, up 10.9 percent from 3.20 trillion won in 2012.

Although the figure is lower than the sales growth rate of 18.5 percent in 2012, it is still a two-digit number. Lotte Dury Free also said that the sales made to Chinese nationals rose more than 60 percent, leading the whole growth.

 

Of the total sales for Lotte Dury Free, the share of Chinese visitors is 45 percent, higher than that for domestic customers. Meanwhile, the sales to Japanese clients fell more than 30 percent, while those for Koreans remain at the same level as before.

 

As for the duty-free shop division of Hotel Shilla (the Shilla Duty Free Shop), the sales revenue rose 9.9 percent to 2.87 trillion won from the previous year. The share of Chinese tourists in Shilla's sales to foreign customers increased to as high as 75 percent last year, while that for Japanese ones fell to the 15-percent level. The most favorite items bought by the Chinese included Korean-made cosmetics, fashion goods, and wristwatches.