Changi Airport Group extends Shilla tenancy

Changi Airport Group (CAG) will extend the tenancy of Shilla Travel Retail (Shilla) for the Perfumes and Cosmetics Concession by four years from 1 April 2024 to 31 March 2028, according to a statement by the Group. The extension will cover 22 outlets and span over 7,700 square meters of retail space across Changi Airport’s four terminals.

Shilla was first awarded a six-year contract for the Perfumes and Cosmetics Concession in Changi Airport in 2014 through a tender, which was subsequently extended until 2024.

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With the latest extension, Shilla will introduce 20 new brands to bolster its current offerings in addition to its assortment of 130 brands.

Amongst them are new-to-Singapore brands such as Lancaster, Rituals lifestyle and wellness products, Augustinus Bader, as well as other homegrown brands. Shoppers can also look forward to fragrances from prestigious French perfumery Maison Francis Kurkdjian and makeup brand Kylie Cosmetics by celebrity Kylie Jenner as well.

Lim Peck Hoon, CAG’s executive vice president for commercial, said, “Shilla was one of our steadfast partners that weathered the storm of the pandemic with us. We look forward to continuing our collaboration with them to elevate the beauty retail landscape in Changi Airport. We are confident that the latest extension will give Shilla a longer runway to provide an exceptional travel retail experience.”

Since 2014, Shilla has worked with CAG to introduce numerous innovative retail stores. These include having the world’s first airport beauty duplex store in Terminal 3 with a Shilla Beauty Loft, and a walkthrough retail concept in Terminal 4 that integrates beauty and liquor by two different operators.

Together with partners in the beauty industry, Shilla will continue to provide travellers with Changi's first pop-up experiences and product launches, while engaging them with omnichannel shopping experiences both in-store and on Changi’s e-Commerce platform iShopChangi.com.

This extension comes after the recovery of retail sales in Changi Airport post-pandemic. Earlier this year, it was revealed that total concession sales hit SG$1.1b in 2022. This represents 37% of sales in 2019 as passenger traffic continues to see a steady recovery since the relaxation of Singapore’s border measures in April 2022.

Sales in December 2022 also reached 58% of its 2019 level on the back of a passenger traffic recovery to a whopping 72%. More than nine in 10 landside and airside shops are open to serve travellers as the airport prepares to welcome even more passengers in 2023.

The tenancy extension will enable CAG and Shilla to continue delivering quality beauty retail experiences to customers as passenger traffic rebounds in Changi Airport.

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