UAE. Dubai Duty Free is set for another record-breaking year in sales with turnover currently running at +19% ahead of the same period last year. And it is poised to develop one of its most ambitious facilities to date – a new five-star hotel.
In 2004 the retailer posted sales of US$500 million, a +32% increase on the previous high.
Managing Director Colm McLoughlin told The Moodie Report: “Our business is going very strongly. If we can achieve a +20% increase for the year we’ll hit US$600 million.”
The retailer had its busiest day of the year last week, generating sales of AED7.2 million (US$2.0 million). McLoughlin said: “We averaged AED5.6 million (US$1.5 million) every day during September with an average 34,000 transactions every day.”
Sales are being boosted by the recent opening of the expanded new 600sq m arrivals shop in the main terminal. “Our arrivals business is around 7% of total sales so on sales of US$600 million that would be US$42 million in its own right and we think it will be more.”
Dubai Duty Free is about to begin work on a 150sq m extension of its perfumes and cosmetics area, a category that continues to boom. Daily sales hit AED1 million (US$272,331) on one day last week.
Other plans include a new arrivals store for T2, an Irish Village food & beverage outlet in the same terminal and refurbished areas for pens and lighters, and gems and precious stones in the main terminal.
But there’s more – much more. Next year Dubai Duty Free will commence work on building its own 5-star hotel at the Aviation Club. The facility, which has just gained approval, will open in December 2007. “We’re very excited by this,” said McLoughlin.
And by the end of 2006 Concourse Two will be on stream, adding another 9,000-10,000sq m of space.
MORE STORIES ON DUBAI DUTY FREE
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Dubai Duty Free first half sales rocket by +19%; average spend per transaction hits US$44 – 03/07/05
