After 40 years, DFS Group will be shutting down its liquor and tobacco stores at Singapore’s Changi Airport when its lease expires next June.
The company will not be taking part in the upcoming bidding process for the liquor and tobacco concession but it will continue to operate its luxury stores.
DFS Group chief, Ed Brennan, said in a statement that “changing regulations concerning the sale of liquor and tobacco, against a global context of geopolitical uncertainty, meant that staying in Changi was not a financially viable option.”
Said regulations include the government reducing the amount of duty-free alcohol allowance for travelers returning to Singapore at the airport from three to two liters, and also imposing a mandatory plain-packaging rule with large health warning graphics for tobacco products.
Among those bidding to take DFS’ place are South Korea’s Shilla and Lotte duty-free companies, and Germany’s Heinemann. The new operator is expected to be selected by the end of this year and will operate the tobacco and liquor stores for six years, from June 9, 2020, to June 8, 2026.