Come July 2020, Singaporean travellers will find themselves shopping for wines and beers under a new store banner.

That’s because travel retailer DFS Group has opted not to bid for new concessions at the Singapore Changi Airport, where it has been selling liquor and tobacco for 39 years, the company announced in a statement.

A DFS liquor store in Changi Airport

DFS Group to close down liquor and tobacco stores in Changi Airport by June 2020

“Our decision not to bid was based on our unique understanding of the business environment as the current operator of this concession at Changi” – DFS Group chairman and CEO Ed Brennan

This means that the group will shutter all its Changi Airport liquor and tobacco stores in June 2020, when its lease expires. Its luxury concessions across all terminals still remain.

“Our decision not to bid was based on our unique understanding of the business environment as the current operator of this concession at Changi,” DFS Group chairman and CEO Ed Brennan said.

He added that “geopolitical uncertainty” and “changing regulations concerning the sale of liquor and tobacco” made staying at Changi Airport a financially unviable option.

“We sincerely thank the Changi Airport Group for their past support, and extend our best wishes as they take the liquor and tobacco concession operations forward in partnership with a new operator.”

DFS Changi Airport

The “changing regulations” that Brennan is referring to could be the Singapore government’s decision earlier this year to lower alcohol allowance for returning travellers, as well as alcohol purchase limits from 3 litres to 2 litres per passenger.

The news came as a surprise to some, because the company had just earlier this month partnered up with Changi Airport Group to launch a new e-commerce platform at iShopChangiWines.com.

Some 500 employees will be affected by the closure of the liquor and tobacco stores. DFS said they may be offered options to work at other DFS concessions, or to transfer to the new operator, “depending on its aspirations and needs”.

It is still business as usual for DFS’ luxury stores at Changi, as well as its downtown operations at T Galleria and Singapore Cruise Centre.

Meanwhile, a tender for a new duty-free liquor and tobacco operator closed on Monday, and it has been reported that three known firms have submitted bids. They are namely South Korea operators The Shilla Duty Free and Lotte Duty Free, as well as German duty-free business Gebr Heinemann.