According to the distribution industry on the 17th, Shinsegae Duty Free has decided to stop its Gangnam branch in Central City, Banpo-dong, Seoul after July 17th. Photo = Homepage of Shinsegae Duty Free Shop
new world(277,500 +1.28%)The duty-free store will eventually withdraw from the Gangnam store in July. Due to the prolonged new coronavirus infection (Corona 19), it has decided to close its doors three years after it started operating in 2018.
According to the distribution industry on the 17th, Shinsegae Duty Free has decided to stop its Gangnam branch in Central City, Banpo-dong, Seoul after July 17th.
With the withdrawal of the Gangnam store, the number of offline stores at Shinsegae Duty Free will be reduced to three: Myeongdong, Busan, and Incheon Airport.
The industry believes that Shinsegae DF, which operates Shinsegae Duty Free Shops amid the prolonged period of Corona 19, has determined that it is difficult to cover the rent of about 15 billion won in Gangnam stores every year. Shinsegae Duty Free’s Gangnam store was only around 1 billion won in daily average sales in the fourth quarter of last year, accounting for only 20% of the Myeongdong store (average daily sales of 5 to 6 billion won).
According to the distribution industry on the 17th, Shinsegae Duty Free has decided to stop its Gangnam branch in Central City, Banpo-dong, Seoul after July 17th. Photo = Hankyung DB
Shinsegae FC turned to the red with an operating loss of 42.6 billion won last year. Although the Corona 19 vaccine is being distributed this year, it is interpreted that the decision to withdraw was made due to observations that it will take time for overseas travel to normalize.
Ahn Ji-young, a researcher at IBK Investment & Securities, said, “Even in the first half of this year, the improvement of the business environment of duty-free shops is limited.”
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