Lotte launches international drive

Gavin Lipsith

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The South Korean retailer eyes targets in India and Australia as it looks to invest after its floatation on the London and Seoul stock markets

Lotte Duty Free Shop is eyeing forthcoming airport retail contracts in India and Australia as it aims to expand beyond its traditional stronghold in South Korea, DFNI Asia can reveal. A well-placed source confirmed that the company has expressed its interest in operating retail concessions at new airports in Bangalore and Hyderabad, as well the core duty-free contract currently being tendered at Sydney International airport.

Parent company Lotte Group, which celebrated its twenty-fifth anniversary in duty-free last year, is seeking airport retail opportunities across the Asia/Pacific region after its recent flotation, which the source said would provide the funding for Lotte to finance big contracts. Duty-free retail is likely to be a key area of investment as the company seeks to build its presence.

"Gaining retail contracts beyond South Korea will be an important part of our growth plans," said the source. "Until now we have been content to grow the business locally, but with the funds we hope to gain from the floatation we will look further afield. This is in line with our aim to be the world's third-biggest duty-free operator by 2015, from the sixth-biggest today."

Lotte Group announced its initial public offering in January (RavenFox.com, January 16) and began trading on the London and Soul stock exchanges on February 9. The company said it hoped to make over $3bn through the floatation.

See DFNI April 1, out now, for more details.