UAE. Dubai Duty Free completed 2024 on a high, establishing a new annual turnover record of AED7.901 billion (US$2.16 billion), buoyed as reported by a big surge in sales towards the end of the year.
December set an all-time monthly record with sales of AED821.94 million (US$225.19 million), a +2% increase over December 2023, which until now was the highest-grossing month in Dubai Duty Free’s history.
The December performance was fuelled by Dubai Duty Free’s 41st anniversary celebrations on 20 December when the retailer offered a -25% discount on a wide range of goods, resulting in a AED59.99 million (US$16.44 million) shopping spree during the 24-hour period.
This performance followed strong sales in November, which were also up year-on-year.
Confectionery was the best-performing category in December with sales showing a remarkable +29.46% increase over December 2023.
Dubai Duty Free Managing Director Ramesh Cidambi said: “We had a terrific November and December and the last week in December was particularly good with the staff really pushing hard to get beyond 2023’s record year.
“Despite all the major renovations and refurbishments that took place, I am very happy with the way the year has turned out.
“I am very grateful for the support that I have from our Chairman, H.H. Sheikh Ahmed bin Saeed Al Maktoum and I join His Highness in thanking our front and back-office staff, our suppliers and our customers for their contribution towards another great year.”
The operation recorded over 20.733 million sales transactions throughout the year, an average of 56,649 per day, while a whopping 55.137 million units of merchandise were sold. It is estimated that over 13.7 million customers shopped in Dubai Duty Free’s arrivals and departures stores in 2024.
Category analysis
The top five categories for the year were perfumes followed by liquor, cigarettes & other tobacco products, gold and electronics.
With sales of AED1.50 billion (US$411 million), perfumes contributed 19% of total sales and retained its position once again as the top-selling category with growth of +9.79% year-on-year.
Liquor reached AED1.056 billion (US$289 million) and accounted for 13% of annual sales but declined -6.6% over last year.
Sales of cigarettes & other tobacco products rose +8.27% to AED807 million (US$221 million) for a 10.2% share.
Gold came in fourth place with sales of AED779 million (US$213 million), just ahead of the category’s 2023 performance, accounting for 9.86% of total revenue.
Electronics completed the top five with sales of AED546. million (US$149 million), down -13% on 2023 and representing 7% of turnover.
Online sales topped AED197 million (US$54 million), equating to 2.5% of annual sales.
Sales in departures edged ahead +0.84% year-on-year to AED7.121 billion (US$1.951 billion) representing 90% of turnover while arrivals sales declined sharply by -12.21% to AED537 million (US$147 million), 6.8% of total annual sales.
Emirati management boost
In line with the growth of the operation, staff recruitment continued in 2024 with total staff numbers now at 6,030 comprising 54 different nationalities.
Cidambi noted, “In addition to adding to our diverse sales force this year we also strengthened our senior management team with the recruitment of eight senior managers in key roles, which include seven UAE Nationals. The new senior managers have integrated very well and are a key part of our five-year business plan (2025-2029).”
Dubai Duty Free maintained its enviable award-winning heritage. Throughout the year, the operation received a total of 17 awards, including its 23rd consecutive Business Traveller Middle East Award for ‘Best Airport for Duty Free Shopping in the Middle East’, the Trazees Award for ‘Favorite Duty-Free Shopping’ and the 18th consecutive Global Traveler Award for ‘Best Duty-Free Shopping in the World’.
Ambitious renovation plans
Looking ahead, Dubai Duty Free will continue to enhance its retail operation which includes the completion of the last phase of renovations in the arrival shops in the three terminals with construction to be finished early this year.
This will be followed by major refurbishment of the luxury watches and electronics stores in Concourse B that will span 2025 and 2026. Also in 2025, Concourse A will see a major renovation of the perfumes and cosmetics shops on the east and west sides, renovation of the Gifts from Dubai offer and the opening of three new boutiques for major fashion brands.
Due to the extent of work in Concourse A, the renovation is expected to start early this year and finish by late 2026.
In addition, Dubai Duty Free said it will continue to maintain its events and promotional calendar which includes the Dubai Duty Free Tennis Championships to be staged at the Dubai Duty Free Tennis Stadium from 16 February until 1 March. ✈
