Abu Dhabi reconfigures T1 retail to reflect pax changes

By Doug Newhouse |

Dan Cappell, Abu Dhabi Airports CompanyAbu Dhabi Airports Company Chief Commercial Officer Dan Cappell says the airport is about to make major changes to its retail offering within Terminal 1, in response to a changing passenger mix.

 

He told TRBusiness recently: “We are about to embark upon some major changes within Terminal 1 to accommodate more seating and to mix the luxury offer with High Street products in order to reflect the change in the demographic profile of passengers travelling through the terminal.”

 

Abu Dhabi Duty Free Terminal 1 [Photo Credit Corgan]

Abu Dhabi Duty Free Terminal 1. [Photo Credit: Corgan].

BIG +10% SALES INCREASE IN 2015

This follows record-breaking passenger figures at the end of 2015 with passenger traffic continuing to increase, reaching 11m passengers between January and June – a 6.6% increase on figures from the first half of 2015, according to Cappell.

 

However, when asked about traffic numbers versus DF&TR spending, Cappell said: “We continue to see traffic growth year on year, driven by Etihad Airways, the national carrier of the UAE. For the first time in many years our revenue growth is not in line with our passenger growth.”

 

He added: “There are many contributing factors to this, including the Chinese austerity drive, general economic environment, and exchange rate fluctuations.”

 

Abu Dhabi Duty Free store at AUH's Terminal 3.

Abu Dhabi Duty Free’s main store located in Terminal 3.

 

OVER 8 YEARS DFS HAS PERFORMED STRONGLY

DFS Group has operated the retail management contract on behalf of Abu Dhabi Duty Free at the airport since 2008 and is widely credited with upgrading it beyond recognition during this eight-year period over two concurrent contracts. [Last year, ADDF’s sales hit a new record high to reach Dhms1.5bn ($408.4m) – a rise of +10.3% on 2014-Ed].

 

DFS’ contract expires at the end of 2017 when Aer Rianta International and Lagardère Travel Retail are both due to take over running their respective new contracts at the new Dhms10.8bn ($2.94bn) 700,000sq m Midfield Terminal Complex (MTC). This is scheduled to open in December of next year.

International

Alcohol insights: Conversion up, spend down in Q4

Conversion of visitors in the alcohol category in duty free has risen to 54% in Q4 2023,...

Asia & Pacific

Heinemann Asia Pacific makes breakthrough in New Zealand at AKL

Heinemann Asia Pacific is set to enter the New Zealand market with three new retail concepts at...

International

Men buy and spend more in travel retail says new research by m1nd-set

Men have a higher conversion rate and spend more when shopping in travel retail, says new...

image description

In the Magazine

TRBusiness Magazine is free to access. Read the latest issue now.

E-mail this link to a friend