KUWAIT. Kuwait Airport Duty Free Shops (Kuwait Duty Free) is projecting sales of US$34 million this year, a +17.4% increase on last year’s figure of just under US$29 million.
The 2003 performance was particularly impressive as it represented an +11% increase achieved in the face of a war-torn year that hit Kuwait more than any other Middle East retail location. Sales suffered badly during the US-led conflict in March and April, during which Kuwait was the centre of troop deployment and movement into Iraq.
The company has grown its annual turnover from just US$9 million in 1994 to its current level, a growth of more than +200%. Last year spend per head increased by +126% and penetration by +109%. Those results were generated without the luxury of being able to sell liquor as Kuwait is a conservative Muslim country.
Unlike many of its regional competitors, Kuwait Duty Free is not permitted to operate an arrivals shop or a “pick up on arrival” service. Additionally it is unable to offers the lucrative car draws and cash raffles associated with other retailers in the region, due to government regulations. The retailer estimates these activities would add at least +40% to revenue, if allowed.
Yet despite these factors and a restricted 464sq m retail space, Kuwait Duty Free generated sales per square metre of US$58,884 last year, well above the regional average, it said.
