The Shinsegae Duty-Free Store located in Busan will close on the 24th of this month.
Shinsegae DF, which operates the duty-free store, noted on the 9th that it will return the operating patent for the Busan location after consulting with customs.
Shinsegae DF plans to inform the remaining tenants and customers that it will end operations in Busan on the 24th if the patent return process proceeds smoothly.
The Shinsegae Duty-Free Store in Busan originally received a patent to operate until 2026. However, due to the COVID-19 pandemic, a sharp decline in Chinese group tourists, and high exchange rates, the entire duty-free sector experienced stagnation, leading to poor performance.
Located in Centum City Mall in Busan, the Shinsegae Duty-Free Store struggled more as a downtown duty-free store.
Due to a decrease in customers, the number of tenant brands reduced, leading to a 25% cut in operating area last November, and as voluntary retirement applications surged, operating days were shortened from seven days a week to five starting at the end of the year.
Shinsegae DF, currently in emergency management, stated that the closure of the Busan location is an unavoidable choice and plans to focus more on operations in Myeongdong, Seoul, and Incheon International Airport.
Shinsegae Duty-Free will open a formal Hermes store between gates 250 and 251 in Terminal 2 at Incheon International Airport on the 10th.
Shinsegae Duty-Free explained that it has been operating a temporary Hermes store in Terminal 2 since February of last year and will now expand and open a new store.