As the domestic duty-free shop industry is undergoing a restructuring through store downsizing and voluntary retirement due to worsening performance, Hyundai Duty Free will also initiate management efficiency measures.
Hyundai Duty Free held a board meeting on 1st and decided to close the Dongdaemun store on July 31. Additionally, the Trade Center store will be reduced from the current three floors (8th to 20th floors) to two floors (8th to 9th floors).
The company has stated that it will focus all its efforts on the Trade Center store and Incheon Airport store to overcome the current crisis and seize the opportunity for a rebound.
A representative of Hyundai Duty Free noted, "Despite numerous crises since the company's establishment, we have done our best with expectations for market recovery; however, the management environment, both domestically and internationally, is deteriorating due to changes in the Chinese market and consumer trends." They added, "After much deliberation, we have decided to pursue management efficiency to overcome the crisis in the duty-free industry overall and improve our management situation and resolve our deficits."
Along with this, Hyundai Duty Free will also pursue organizational efficiency. Considering that changes in organizational and personnel operation structures are inevitable due to the efficiency of city duty-free shops, it plans to implement transitions to customer-facing roles to stabilize employee employment. Furthermore, it will promote voluntary retirement systems to enhance organizational productivity.
A representative of Hyundai Duty Free mentioned, "The push for management efficiency this time is an unavoidable choice to normalize business amid the overall crisis in the duty-free industry and further promote future growth," adding, "We will do our best to ensure a transparent and stable normalization of business."