"Duty-Free Shops Closed for Chuseok Holiday... Seeking Desperate Measures as Seasonal Demand Disappears"

[Image source=Yonhap News]

[Asia Economy Reporter Yuri Kim] This Chuseok, major domestic duty-free shops such as Lotte, Shilla, Shinsegae, and Hyundai Department Store will simultaneously close their downtown duty-free stores. Due to the continued impact of COVID-19 and the disappearance of holiday demand, duty-free shops are preparing desperate measures such as events offering "no-landing sightseeing flights."

According to the industry on the 18th, all downtown duty-free shops will be closed on Chuseok day, the 21st. The closures include Lotte Duty Free Myeongdong Main Store, World Tower Store, COEX Store, Busan Store, Jeju Store; Shilla Duty Free Seoul Store, Jeju Store; Shinsegae Duty Free Myeongdong Store, Busan Store; and Hyundai Department Store Duty Free Trade Center Store, Dongdaemun Store.

Some stores will be closed not only on the day but also during the holiday period. During last year's Lunar New Year holiday, the first holiday after the outbreak of COVID-19, stores were open except on the holiday itself, but as the situation prolonged and it became difficult to expect holiday demand, this decision was made. Lotte Duty Free COEX Store and Busan Store will be closed from the 19th to the 21st, Jeju Store from the 18th to the 22nd; Shilla Duty Free Jeju Store from the 18th to the 22nd; Shinsegae Duty Free Busan Store from the 19th to the 21st. However, airport duty-free shops such as those at Incheon International Airport will operate normally.

In a situation where it is difficult to expect holiday demand, duty-free shops have come up with desperate measures. Shilla Duty Free is holding an event to give away no-landing sightseeing flight tickets to duty-free customers during the Chuseok holiday and the October holidays of Gaecheonjeol and Hangeul Day. Until October 7, 96 customers who purchase over $500 in a single day at Shilla Duty Free Seoul Store using Naver Pay will have the opportunity, on a first-come, first-served basis, to receive a one-way no-landing flight ticket on Jeju Air departing from Gimpo Airport and arriving at Jeju Airport on October 8. Customers who purchase over $1,000 will also receive a companion seat. In addition, Shilla Duty Free expanded consumer contact points by entering the official fashion mall SSF Shop of Samsung C&T this month, following Coupang last month.

Lotte Duty Free is preparing for the post-COVID era by undertaking a major overhaul of its online duty-free shop and official website. The official website separates the business introduction page into existing duty-free business and new business (New Biz), providing information about Lotte Duty Free's recently launched overseas direct sourcing online mall 'LDF BUY' and the domestic customs clearance duty-free exclusive mall 'LUXEMALL.'

LDF BUY is running an event until the 22nd offering up to 50% discounts on popular representative products from new brands such as 'BLACKMORES,' 'GNC,' and 'SWISSE.' Earlier in May and July, the online duty-free shop was revamped. It introduced personalized product recommendation services including a sunglasses fitting service using augmented reality (AR) and a virtual flagship store experience space implemented with virtual reality (VR) technology.

Shinsegae Duty Free is releasing brand collaboration products. The "Toad World Edition 6 types," launched in collaboration with HiteJinro, is a limited edition soju glass goods made in cooperation with HiteJinro's "Jinro Is Back" to provide fresh fun to customers who miss traveling abroad due to COVID-19. The toad soju glasses are designed with the toad character using landmarks and iconic representative items from six continents' representative travel countries including the United States, France, Australia, Italy, and Thailand. Shinsegae Duty Free said, "It can replace the small joy of collecting souvenirs when visiting tourist spots during travel," and added, "We hope the world travel concept goods can soothe the regret of paused overseas travel for a while."