By Elizabeth Broomhall
CEO of world's top airport retailer says perfume sales outstripping gold
Dubai Duty Free expects annual sales to more than double in
the next decade, reaching up to AED12bn ($3.3bn) by the end of 2020, its CEO
Sales of perfumes, cosmetics, liquor products and gold continue
to surge at the Gulf’s top transit hub, Colm McLoughlin said. The airport retailer
saw sales of AED4.66bn in 2010.
“We expect to finish this year with sales of AED5.3bn, and
have budgeted for AED6bn in 2012,” he told Arabian Business. “By 2020, we
expect about AED11bn to AED12bn.”
DDF saw a 16.6 percent rise in sales in the first half,
despite a decline in regional tourism figures in the wake of the Arab Spring uprisings,
posting revenues of AED2.54bn.
The top three selling categories continued to be perfumes,
liquor and gold with perfume sales increasing by 20 percent to reach AED361m.
Average passenger spend is $46, DDF data shows, with half of all travellers
making a purchase.
McLoughlin said he
planned to expand the retailer’s cosmetics offering to cater for rising demand
“Our single biggest category at the moment is perfume, and
yes, it is bigger than gold,” he said.
“In 2012, concourse 3 will open, and we are going to put in
an additional 8,000 sq m of retail space. So we are talking there about
duplicating our perfume and cosmetics [section].”
DDF said in August it would part-finance the building of a
fourth concourse at Dubai International Airport, in its first large-scale
The state-owned retailer said the investment would be funded
by cashflow, but did not specify the value of the outlay.
Dubai in July said it would spend $7.8bn on expanding its
airports as it seeks to turn Dubai International into the world’s busiest
airfield. The airport plans to complete Concourse 3, meant for the use of
Emirates’ Airbus A380 planes, by 2012 and to build Concourse 4 by 2015.