Hotel Shilla cuts losses at airport duty-free stores, but city duty-free sales growth remains a challenge

Hotel Shilla turned its duty-free (TR) division profitable in the second quarter as losses at the Incheon Airport store narrowed.

However, sales at its downtown duty-free shops rose only 2% year over year despite a sharp increase in foreign visitors to Korea.

The downtown stores still rely heavily on group-tour demand, while Jeju and Incheon Airport DF3 benefited more from individual travelers.

The company plans stronger promotions and broader product offerings in the second half to boost downtown store growth.