Focusing on the growth categories The increased duty free space given to wines & spirits reflects pressure on tobacco sales since VAT and excise duty free were recently imposed on the category in duty free. Additionally, the recent introduction of the Digital Tax Stamp on cigarettes had resulted in a (short-term) shortage of popular brands in arrivals, but this situation should improve, Executive Vice Chairman and CEO Colm McLoughlin told us late last year. |
UAE. Dubai Duty Free has opened an enlarged arrivals store in DXB (Dubai International Airport) Terminal 3.
The shop features 1,100sq m of retail space, up +66% on the previous 660sqm. The additional area, mostly sited in front of the former store’s demise line, has been designed to sharply boost the store’s visibility to passengers arriving to T3’s huge baggage hall.
Dubai Duty Free Executive Vice Chairman & CEO Colm McLoughlin said, “We are very pleased with the outcome of the new arrivals shop and think that our customers are going to love it. Arrivals sales account for 9% of our business and it is a sector that we want to grow.
“A high percentage of our arrivals customers are UAE residents who travel several times a year and they are going to appreciate the new shop for its ease of access, its high-end design and the extensive products on offers, including travel retail-exclusives. We are very excited about this new opening.”
For the first time, the new arrivals shop offers arriving passengers the chance to purchase from Dubai Duty Free’s entire liquor range. This comprises over 2,500 products, including 121 travel retail-exclusives and 41 products that are exclusive to Dubai Duty Free alone.
Dubai Duty Free Chief Operating Officer Ramesh Cidambi said: “The new shop is much more visible, and passengers will start to see the shop earlier as they come down the moving walk-ways in the middle of the hall.
“The combination of strong signage and use of digital screens makes the shop front very attractive. A customer entering the shop will find a great retail offer in the wines and spirits category, and growing this category is important due to the taxation issues around tobacco in arrivals [a reference to new regulations applying VAT and excise duty to tobacco items, see sidebar -Ed].
“There are many new retail elements here introduced for the first time including a salon area for customers buying premium wines and spirits. These new elements results in a much better retail experience for our customers.”
To add to the shopping experience, each category has been given a distinct personality with its own palette of materials and customised designs.
The store entrance features a Champagne wall designed by Moët Hennessy for its brands and a generic area for others, plus a prominent digital screen for features and promotions.
To reflect growing demand for single malt whisky, the category has a front-of-house feature that allows customers to identify it with ease and to experience personal service that helps them make informed purchases with confidence. The offer includes 19 malts exclusive to Dubai Duty Free.
Tonic for gin offer
Reflecting the rising popularity of gin, a new dedicated area dubbed ‘Keep Your Gin Up’ has been added. It will eventually stock over 50 gins of which 15 will be exclusive to the store. “This area reflects the huge growth that this category has undergone as a result of premiumisation and craft brands,” Dubai Duty Free said,
‘Here for the Beer’ is another brand-personalised area with additional space given to the category in response to the growing demand from discerning customers for light and craft beers. A Heineken back wall display draws customers to the rear of the shop due to its clear visibility from the entrance. Eight of the new beer products will only be available in this shop.
The Happy Landing Bar in the centre of the shop utilises a large pillar and has been designed to house a concept for white spirits, concentrating primarily on vodka. The circular unit can be used in multiple ways for promotions, particularly those that engage with and educate customers in a fun way.
‘On the Rocks’ is dedicated to the key whisk(e)y category and houses non-malt products. Many of the whisk(e)y promotions will be presented here along with ten items exclusive to the store.
More fun is offers with a ‘Tuktuk’ vehicle which has been given a quirky design and converted into a mobile chiller. The open fridges integrated inside the Tuktuk house stock a range of chilled wines, Champagnes, mixers, beers and other items.
Personalised, private, premium
The elegant Salon Prive offers a personalised service for customers buying premium wines and spirits. The glass-walled lounge is temperature-controlled with a seating area where customers can meet trained wine and spirits advisors with a wealth of product knowledge. The Salon Prive is the anchor for the larger wines area in the centre of the shop which has been segmented to allow customers to easily navigate the world of wine.
Due to generous allowances and heavy local duties, wines and Champagne are a major contributor to Dubai Duty Free arrivals sales, a popularity reflected in their strong representation here.
A dedicated tobacco area includes a built-in humidor. A representation of other categories, such as perfumes & cosmetics, consumer technology, confectionery and toys, is located at the newly designed check-out system, this encouraging impulse purchases.
The Click & Collect service, which allows customers to collect items purchased online or in departures, is given a dedicated space at the entrance of the shop. It is positioned next to an upgraded Millennium Millionaire and Finest Surprise counter featuring a luxury car display.
Digital screens have been added throughout the shop to support the unique personalities of each category and to encourage product story-telling. The shop design is very much focused on product presentation and visual merchandising, the retailer said.
Expansion continues
This opening marks the next stage of Dubai Duty Free’s expansion plan at DXB. The project includes the second phase refurbishment of the two FoodPlus shops in Concourse B and the continued enhancement of the fashion offer, which will continue in the second half of the year.
