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ESG NEWS 2021.09.15

Lotte Duty Free Introduces “Smart Receipts” Instead of Paper Receipts to Begin Major Transition to an Eco-friendly Duty-free Company

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 - The first in the domestic duty-free industry to digitalize duty-free exchange vouchers, which will be issued in all branches in Korea starting on the 14th
 - Expected to replace 1 million paper receipts a year
 - Six branches have already adopted electronic shelf labels since August

Lotte Duty Free (CEO: Lee Kap) stated on September 15 that they would be starting a "smart receipt" issuing service for the first time in the domestic duty-free industry. The strategy is to utilize digital technology to carry out environmental, social and governance (ESG) values and increase customer convenience.

Smart receipts are digital receipts that are sent to devices such as mobile phones in lieu of paper receipts used in stores. Paper receipts use thermal paper, a chemical-coated paper, and this is the reason for their non-recyclability. They have been mentioned as a waste of resources and cause of environmental hormones. Thus far, the Korean duty-free industry utilized digital receipts to replace the roles of paper receipts, such as checking purchase history. Lotte Duty Free is the first to digitalize even the duty-free exchange vouchers. Lotte Duty Free expects to reduce wastes of up to approx. 1 million paper receipts with this smart receipt system.

Lotte Duty Free members will receive a smart receipt through the Lotte Duty Free website or mobile app immediately after a purchase. Until recently, customers had to hold on to paper receipts that were easily lost for purposes of exchanging or refunding products; now they can use smart receipts to access purchase history from anywhere, at any time. The exchange vouchers used for claiming the duty-free items at airports will also be replaced with smart receipts. Customers who are not used to smart devices or need paper receipts can also ask for paper receipts as well. 

Smart receipts are found under “My Lotte - Smart Receipts” after logging into the Lotte Duty Free website and is stored for four years from the time of purchase. Lotte Duty Free operates its online shop in six languages (Korean, English, Chinese (simplified and traditional), Japanese, and Vietnamese), allowing global customers to experience no discomfort when issuing smart receipts. The company intends to roll out smart receipts in all domestic branches first before expanding to foreign stores.

Lotte Duty Free has also expanded electronic shelf labels (ESLs) that were first introduced in the Myeongdong Main Store's smart store to six more domestic locations recently. Old price labels were consumables that had to be replaced manually according to product specification or price changes. ESLs, on the other hand, are network-based and can be updated in real time without any replacement. This reduces resource wastes and increases the work efficiency of employees. Also, ESLs are battery-powered and can be used semi-permanently. Lotte Duty Free plans to use ESLs to create a digital duty-free shop in which customers can shop conveniently, doing everything from product searches to self-payment.

CEO Lee Kap stated, “In accordance with Lotte Duty Free’s eco-friendly management slogan, ‘Duty 4 Earth,’ we will continue to find aspects where unnecessary waste occurs and will continue to actively apply modern technologies to protect the environment and increase customer shopping experience.”

Lotte Duty Free has also established the industry's first “ESG Value Promotion Committee” in March, and the company participates in various activities to ensure sustainable growth. Solar panels will be installed in general distribution centers and all 1-ton bonded transportation vehicles will be replaced with electric vehicles by next year. In addition, Lotte Duty Free is taking the lead in environmental protection and waste reduction through expanding the use of shopping bags made with biodegradable materials, as well as creating store leaflets, event banners, and other printed materials with eco-friendly materials made with sugar cane by-products. (End of article)