Hong Kong-based duty-free operator King Power Group is to open its first Australian store at Sydney Airport Terminal 1.

King Power Group has created a division called King Power Australia to oversee its operation in the country.

The first store will span 62 sqm and will carry products by La Perla, an Italian lingerie brand.

“We have set up a new company called King Power Australia, and we have major expansion plans both in travel retail and domestic markets,” said MD Sunil Tuli.

King Power plans to operate number of stores across airports and downtown after gaining concession rights to operate several brands.

“There is a big opportunity here,” said Tuli. “There’s room for international brands that don’t have a big presence as yet in Australia. We believe we can add value to them there, and grow King Power’s presence in the retail business too.”