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“DFS represents a best-in-class solution for our duty free offer” – ADAC Chairman H.E. Khalifa Al Mazrouei |
UAE. In a major industry development, Abu Dhabi Airports Company (ADAC) and DFS Group today signed a letter of intent to develop the duty free retail environment at Abu Dhabi International Airport. The agreement underlines the level of ADAC’s ambitions and presents DFS Group with a long-term opportunity in one of the world’s fastest-growing aviation markets.
The two parties said that the initial focus will be on developing duty free shops for the opening of the airport’s new Terminal 3 (to be served by fast-growing national carrier Etihad Airways), followed soon after by the redevelopment of T1.
ADAC Chairman H.E. Khalifa Al Mazrouei welcomed today’s development. “Our ambition is to offer our customers a range of choices and DFS represents a best-in-class solution for our duty free offer,” he said. “Once concluded this agreement will bring higher levels of luxury retail expertise to Abu Dhabi and together we can set a new benchmark for duty free retailing in the Middle East region.”
DFS Group Chairman and CEO Ed Brennan said: “At DFS we are delighted to have taken this first step in building a great new partnership with ADAC. We look forward to working with ADAC to develop Abu Dhabi into the luxury travel retail destination of the Middle East.”
Abu Dhabi International Airport is currently being redeveloped with a second runway close to completion and a new five million passengers per annum capacity T3, which is set to become operational in the next few months. Plans are being finalised for a major new airport development capable of handling 20 million passengers a year from the end of 2011.
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An artist’s impression of Abu Dhabi International Airport’s new T3 – now to be enhanced by DFS Group’s retail expertise |
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DFS Group Chairman Ed Brennan plans to create the luxury travel retail destination of the Middle East | |
Abu Dhabi Duty Free broke through the US$100 million annual sales barrier for the first time in 2007, closing out the year with a record US$102.6 million in turnover. That represented a +36.3% increase year-on-year.
COMMENT: This big breaking news represents a coup of equal proportions for both parties. Ever since it was created in 2006 ADAC has made it consistently clear that it wants to create new benchmarks for Abu Dhabi’s aviation infrastructure. Securing the services of such an acclaimed retailer as DFS underlines that ambition in the most emphatic manner. It introduces a retail partner of undisputed class to an airport that has traditionally opted for an in-house retailing model, trading as Abu Dhabi Duty Free.
Today’s surprise news effectively changes the landscape of Middle East travel retail and will make every rival airport and retailer sit up and take notice.
Last June DFS first signalled a potential focus on the region by expressing interest in the pioneering Requests for Proposals covering a range of specialist categories at Abu Dhabi International Airport.
Now it has gone one giant step further. The deal offers a hitherto unexpected platform in the booming Middle East travel retail channel. Its regional debut will come amid a period of unprecedented investment and expansion in the UAE capital and the company will be confident that the initial T3 and T1 focus will lead on to even bigger developments in the future.
ABOUT ABU DHABI AIRPORTS COMPANY
Abu Dhabi Airports Company (www.adac.ae) is a public joint stock company wholly owned by the Abu Dhabi government. It was incorporated on 4 March 2006 to spearhead the development of the Emirate’s aviation infrastructure.
ADAC took over the operation and management of Abu Dhabi International and Al Ain airports on 28 September 2006. its mandate includes the redevelopment and expansion of Abu Dhabi International Airport, which includes the new Midfield Terminal designed to increase the overall capacity of the airport to 20 million by 2011.
Wholly owned Abu Dhabi Duty Free already enjoys one of the industry’s highest average spends per transaction, and 2007 saw a marked upward trend. This key indicator rose by +23.5% to US$58.50 (per transaction by departing passenger).
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ABOUT DFS GROUP
DFS Group (www.DFSGalleria.com) is the world’s leading travel luxury retailer with more than 150 shops at major airports in Asia Pacific and North America, including Singapore Changi, Hong Kong International, Sydney, Auckland, New York JFK, San Francisco, Los Angeles, Honolulu and Mumbai.
DFS Group also operates 14 large luxury DFS Gallerias in key downtown and other off-airport locations. The retailer, headquartered in Hong Kong, is majority owned by LVMH Moet Hennessy Louis Vuitton; the balance is owned by companies associated with the company’s co-founder Robert Miller.
MORE STORIES ON ABU DHABI INTERNATIONAL AIRPORT
Abu Dhabi Airports Company names new Director of Marketing and Communications – 18/02/08
Abu Dhabi Duty Free breaks the US$100 million barrier – 18/02/08
Sales soar by +44% as Abu Dhabi Duty Free announces winners of “˜Go Crackers’ promotion – 27/01/08
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