Abu Dhabi Duty Free breaks billion Dirham barrier with +10.5% revenue rise

We continue to align our range of products more closely to the passenger demographic. This has played a big part in driving sales beyond the AED1 billion mark.
H.E. Ali Majed Al Mansoori
Chairman
Abu Dhabi Airports

UAE. Abu Dhabi Airports announced today that Abu Dhabi Airport Duty Free posted sales of AED1.009 billion (US$275 million) in 2014, a strong rise of +10.5% year-on-year achieved despite extensive refurbishment works and disruption from multiple new store installations.

Abu Dhabi Airports Chairman H.E. Ali Majed Al Mansoori said: “This significant milestone confirms that we are providing passengers with the diverse services and offerings they expect at a major international airport and reflects the incredible growth in passengers, which is largely driven by the success of the national airline, Etihad Airways.”

Beauty & fragrance (operated by DFS Group under the overarching Abu Dhabi Duty Free brand) emerged as the biggest selling product categories in 2014 with a combined 31% share of duty free turnover and a +9.7% rise 2013.

Indian, Chinese and Emirati passengers continued to account for the highest share of sales (36% combined).

A number of new stores opened in 2014, including two multi-category duty free shops; a 253sq m DFS fragrance boutique in Terminal 3; refurbished core duty free stores on the Terminal 1 Upper Level; and several other initiatives including a new Wellness Spa and Minimart outlet.

H.E. Ali Majed Al Mansoori added: “To achieve an increase in average spend per head amid refurbishment works and new store installations is always challenging. However we continue to align our range of products more closely to the passenger demographic. This has played a big part in driving sales beyond the AED1 billion mark.”

The growth was across all categories with the following performing particularly strongly:

• Perfume and Cosmetics: +9.7%
• Rolex: +36.6%
• Watches: +15.5%
• Cigars: +13.2%
• Food and Confectionery: +8.4%

In 2014 Abu Dhabi Duty free sold over:

• 40,000 litres of fragrance;
• 200 tonnes of powdered milk;
• 188 tonnes of chocolate including 25 million single M&M candy sweets

The spectacular Midfield Terminal Building will house 28,000sq m of commercial space when it opens in 2017, including some profoundly ambitious executions captured in the artist’s impressions below

Abu Dhabi Airports also rolled out a variety of new food & beverage concepts, including a Montreux Jazz Café and the world’s first airport CNN café.

Many of the world’s leading brands and retailers are expected to submit bids for contracts at the Midfield Terminal Building, which is making rapid progress and will have an annual capacity of 30 million when it opens in 2017.

The fragrance boutique, opened by DFS Group and Abu Dhabi Duty Free in 2014, offers several items that are exclusive within the Middle East

Abu Dhabi Duty Free said its vision is to create the world’s best commercial offer at an airport within the Midfield Terminal and provide customers with a “sensational experience and exclusive innovative offers”, supported by high levels of service and traditional Emirati hospitality.

H.E. Ali Majed Al Mansoori concluded: “Abu Dhabi Duty Free will continue to focus on improving our customer experience with phase two of our retail and food & beverage refurbishment programme that will enable us to offer the widest choice to our passengers, exclusive offers and product launches, innovative promotional campaigns, great value and excellent customer service, which will all contribute to the further growth of Abu Dhabi.”

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