Shinsegae Duty Free’s Busan branch, which has been facing operational difficulties due to weak sales, will officially close on the 24th of this month.
Shinsegae DF, the operator of Shinsegae Duty Free, announced on the 10th that it will return the operating license for the Busan store after consulting with customs.
Although the store was initially licensed to operate until 2026, the company has decided to withdraw early due to continued poor performance.
The Busan branch, located in the basement of Shinsegae Department Store Centum City Mall, has struggled significantly due to a sharp decline in Chinese tourist group customers and overall industry challenges exacerbated by the high exchange rate following the COVID-19 pandemic.
While the duty-free industry has shown signs of recovery in metropolitan areas and at airports, the downtown Busan store has continued to struggle.
Due to declining customer numbers, fewer brands opted to enter the store, leading to a 25% reduction in sales space in November last year.
A growing number of employees applied for voluntary retirement, and weekend operations were suspended starting last month, making normal business operations unsustainable.
Shinsegae DF will concentrate its resources on its flagship store in Myeongdong, Seoul, and the Incheon Airport branch.
