UAE. Dubai Duty Free has revealed a +10% increase in sales for the first half of the year with turnover reaching US$1 billion. The retailer said it is on track to reach US$2 billion in sales by year-end.
Liquor, perfumes and tobacco were again the top three categories with liquor showing a +7% increase year to date (YTD) at US$151.55 million, while perfumes, which account for 15% of total sales, reached US$146.46 million.
Tobacco sales increased by +36% over the same period last year. Other notable YTD increases came in cosmetics (+27%) and electronics (+25%). For the first six months Dubai Duty Free recorded 12,769,905 sales transactions with average daily sales of US$5.6 million.
Dubai Duty Free Executive Vice Chairman and CEO Colm McLoughlin said: “2018 has been a fantastic year for Dubai Duty Free so far. We have continuously grown our business and are happy to see a double-digit increase for the first half. With new retail areas now operational and ongoing retail developments coming on stream at both Dubai International and Al Maktoum International, we are confident that we will reach the US$2 billion mark at the end of December, which also marks our 35th anniversary.”
At 88% of revenue, departures sales (at Dubai International and Al Maktoum International) showed an +11% increase over the same period last year, to reach US$889.35 million. Sales across all concourses registered significant increases with Concourse C (Terminal 3) up +60% over last year, mainly as a result of new retail areas opened in recent months. In addition, Concourse A sales rose by +16%, Terminal 2 departure sales by +14%, Concourse D sales by +8% and Concourse B by +6%.
The major refurbishment of Concourse C, which features new watches and electronics shops, will be completed by year-end and will cover a total of 4,700sq m.
The Al Maktoum International Airport Passenger Terminal Building has also recently completed the redevelopment of the departures area, including a new and refurbished Gifts from Dubai, plus electronics, perfumes & cosmetics, and liquor & tobacco shops. By year-end, Dubai Duty Free there will have expanded to 4,500sq m from the previous 2,500sq m.
Recruitment at Dubai Duty Free continued in the second quarter of 2018, bringing employee numbers to 6,070, which includes 783 Chinese staff, who represent 13% of manpower. Dubai Duty Free recruited its first Chinese employee in 2006 and has welcomed 190 staff from China this year alone to cater to the growing number of Chinese travellers. These travellers now account for 15% of sales.
The company is continuing with its events and promotional calendar, which includes the Dubai Duty Free Shergar Cup at Ascot Racecourse on 11 August, followed by the Dubai Duty Free International Weekend on 21 and 22 September at Newbury Racecourse.
Click on the links for our recent coverage of the Dubai Duty Free Irish Open and the Dubai Duty Free Irish Derby.
