Country: United Arab Emirates
Industry Sector: FMCG / Retail
Description: On the day that Dubai Duty Free’s new retail operation opened for business in Concourse A at Dubai International Airport, the operation has announced year-end sales figures of a record Dhs5.9 billion (US$1.6 billion), representing a 10% increase over 2011.
Comments: The signs of a remarkable year were evident from the early stages and concluded in December when a new monthly sales record of Dhs619 million (US$169 million) was achieved. On the operation’s 29th Anniversary Day on December 20th a special promotional offer of 25% discount fuelled sales of Dhs76.91 million (US$21 million) in the 24-hour period.
Reflecting on another memorable year at Dubai Duty Free, Colm McLoughlin, Executive Vice Chairman said: “We are thrilled to announce such a positive year in 2012. The entire team at Dubai Duty Free has worked hard to continue to drive sales, while focusing on the expansion of our business in Concourse A. We have recruited a total of 1,600 new staff in 2012, bringing our staffing levels up to 5,200, all in preparation for our growth plans which are very exciting.
“My thanks as always for the support and encouragement of H.H. Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman of Dubai Duty Free and I join His Highness in thanking our staff, our suppliers and our customers for ensuring such a great year.”
With the phased opening of Concourse A, which is dedicated to the Emirates A380 fleet, Dubai Duty Free now operates 26,000 square metres of retail space at Dubai International Airport. The operation recorded a staggering 23.5 million sales transactions in 2012, which average out at 64,200 sales transactions per day.
Perfumes retained its position as the top selling category with sales reaching Dhs907 million (US$249 million), an increase of 13%, or US$28 million over the previous year. The Perfumes category now contributes 15% towards total sales at Dubai Duty Free.
The second highest category was Liquor which showed an increase of 17% to Dhs871 million (US$239 million), while Gold retained the No. 3 position with sales of Dhs582 million (US$159 million). Tobacco sales reached Dhs476 million (US$130 million), a 10% increase year-on-year. Confectionery sales jumped to the fifth position and recorded sales of Dhs465 million (US$127 million), representing an 18% increase over last year.
Other steep increases were seen in Electronics, which rose by 13% to Dhs460 million (US$126 million), Watches rose by 11% to Dhs396 million (US$108 million) while Cosmetics sales rose by 14% to Dhs373 million (US$102 million).
Sales increases were seen across all Dubai Duty Free retail areas in all three Terminals: Terminal 1 recorded a 7% increase on overall sales, Terminal 2 sales increased by 15% and Terminal 3, which currently accounts for 60% of total sales, increased by 11%. Sales in the Arrivals retail areas increased overall by 13%.
Looking ahead, Dubai Duty Free will continue to enhance its retail operation in 2013 while maintaining a busy events and promotional calendar, which includes the Dubai Duty Free Tennis Championships, commencing on February 18th to March 2nd, 2013 at the Dubai Duty Free Tennis Stadium.