DDF 10-month sales +11% to $1.29bn

By Doug Newhouse |

Dubai Duty Free (DDF) has reported yet another impressive increase of 11% in sales to $1.29bn for the first ten months of 2012. [This includes a detailed four-year sales analysis-Ed].

 

The world’s second-largest airport duty free operation said this puts it ‘on track’ to meet its forecast year-end sales total of $1.6bn.

 

Once again, the Perfume category (see T3 image, right) led all other categories with dollar equivalent value sales of $199m in the period, accounting for 15% of all sales. Strong increases were also recorded in Confectionery (+18%) to US$103m; Electronics (+11%) to $100m; Watches (+11%) to $85m; and Cosmetics (+17%) with sales of $82m.

 

DDF added today that ‘impressive sales figures’ were also achieved by all three Terminals for both departing and arriving passengers with T1 up 9%, T2 plus 16% and the Emirates’ dedicated T3 up 12%. By contrast, duty free arrivals shop sales across all Terminals were up by 15%.

 

 

According to  Colm McLoughlin, (right), Executive Vice Chairman of Dubai Duty Free, 2012 now looks as though it will be ‘a fantastic year’ with DDF’s sales per head around $49, and the retailer’s penetration level standing close to a very impressive 50%. DDF is now approaching its most lucrative sales period of the year with both its famous discount periods and Christmas and McLoughlin said: “We are looking forward to a busy couple of months and closing the year with record sales.”

 

[ED’S NOTE/SEE BELOW: This story includes DDF’s January to September sales by volume this year, plus a specially compiled four-year sales analysis of the leading airport retailer’s performance between 2008 and 2011].

 

In addition to its sales progress to date this year, DDF also points to several top industry awards, including the recent Frontier Award for ‘Best Airport Retailer of the Year’.

 

Commenting on this recognition McLoughlin  said: “This is the sixth time that Dubai Duty Free has won the ‘Best Airport Retailer Award’ since the awards began and given the competitive nature of these awards, it really is a great honour to be voted as the best.“

 

Right: Confectionery at Dubai Duty Free.

 

Dubai Duty Free opened for business on December 20 1983 and is now celebrating its 29th anniversary and the retailer says the operation has plans in place to make this a memorable day.

 

The anniversary day has traditionally become an annual celebration for all passengers traveling through the airport and once again it will be marked by the aforementioned sales discount (-25%) on a wide range of merchandise during the 24-hour period.  According to DDF, many passengers deliberately travel via Dubai at the end of the year to take advantage of this discount day.

 

DUBAI’S PATH TO HUB PROMINENCE

Kevin Rozario writes: Meanwhile, at this week’s DFNI’s Global Conference in Malta, George Horan, President of Dubai Duty Free detailed the spectacular growth that the retailer has achieved over the past decade on the back of Dubai International Airport’s impressive development as a major hub in the Middle East for national carrier Emirates.

Horan revealed that DDF’s sales had risen from AED891.2m (US$243m) to AED 3,875.4m (US$1,055m) in Concourse 1 from 2001 to 2008, a more than four-fold increase, far better than the percentage growth in total passenger traffic (13.5m in 2001 to 37.4m in 2008) and closer to Emirates’ growth rate from 6.9m in 2001 to 22.0m in 2008, which drove up transfer passenger numbers.

With the addition of Concourse 2 in 2009, DDF sales grew further and this year are expected to hit AED5,900m (US$1,606m) from 57.4m pax of which 36.9m were flying Emirates. Looking ahead the new Concourse 3 is expected to drive up DDF’s total sales to AED10,208m ( US$2,780m) by 2020 from a total passenger count of 97m pax, of which 25.1m will be on Emirates.

[Top image: The Perfume offer in Dubai International Airport’s dedicated Terminal 3 for Emirates].

 

DUBAI DUTY FREE SALES

JANUARY to SEPTEMBER 2012

CATEGORY

UNITS SOLD

UNIT OF MEASURE

Beer

6,339,700

Cans

Whisky

1,962,537

Bottles

Wines

1,013,200

Bottles

(1)Liquor

4,999,279

Bottles

Cigarettes

2,975,283

Cartons

Cigars

10,558,175

Pieces

Cameras & Accessories

121,125

Pieces

iPads

22,794

Pieces

iPhones

10,496

Pieces

Laptops

32,465

Pieces

Mobile Phones

112,375

Pieces

Gold

1,927

Kilograms

Makeup/skincare

1,258,061

Pieces

Perfume

2,094,482

Bottles

Scarf/shawl/stole

14,176

Pieces

Sunglasses

57,808

Pieces

Handbags small leather

62,579

Pieces

Telephone cards/E vouchers

976,610

Pieces

Watches

177,246

Pieces

Chocolate

1,702

Tonnes

Dates

421

Tonnes

Caviar

347

Kilograms

Nuts

752

Tonnes

Nido

686

Tonnes

Tang

1,195

Tonnes

(1)All liquor, including wines and whisky, but excluding beer – measured in cans.

Source: Dubai Duty Free.

 

DUBAI DUTY FREE VOLUME SALES

JANUARY to DECEMBER 2008-2011

YEAR:

2011

2010

2009

2008

SALES:

$1.46bn

$1.27bn

$1.14bn

$1.1bn

Year-on-year +/–

(+15.69%)

(+14.0%)

(+3.76%)

(+23%)

PRODUCT

CATEGORY

SALES   VOLUME

SALES   VOLUME

SALES   VOLUME

SALES   VOLUME

UNITS OF MEASURE

Cigarettes

4,083,050

3,876,841

3,603,221

3,349,219

Cartons

Liquor

6,694,676

6,196,249

5,680,586

5,570,100

Bottles

Beer

8,523,412

7,901,020

7,581,446

7,432,824

Cans

Gold

2,828

2,940

3,491

4,033

Kilograms

Watches

228,856

211,739

196,824

216,771

Pieces

Perfume

2,852,778

2,542,974

2,306,713

2,460,161

Bottles

Mobile phones

162,990

161,094

169,697

155,921

Pieces

DVD Player

3,992

6,098

8,193

8,343

Pieces

Video Camera

8,871

10,402

10,566

11,976

Pieces

Discman

n/a

287

674

1,348

Pieces

Walkman

n/a

3

62

310

Pieces

Radio Cassette Recorder

n/a

3,403

4,802

6,078

Pieces

Audio cassettes

n/a

1,163

3,147

5,881

Pieces

Video cassettes

n/a

79

27

107

Pieces

Cameras & Accessories

149,470

136,034

142,422

173,786

Pieces

Telephone cards

971,139

1,282,719

1,232,843

1,381,913

Pieces

Golf Clubs

548

335

403

778

Pieces

Handbags/small leather

84,998

91,480

51,689

39,252

Pieces

Scarf/shawl/stole

22,156

23,095

23,456

27,867

Pieces

Caviar

345

646

640

669

Kilograms

Nuts

967,890

1,076,954

1,062,404

1,177,456

Kilograms

Cadbury

207,068

201,130

165,616

211,504

Kilograms

Toblerone

255,705

384,490

223,360

193,212

Kilograms

KITKAT

668,173

548,029

301,696

271,201

Kilograms

Mars

129,528

139,097

145,949

149,942

Kilograms

Quality Street

122,832

121,983

117,118

133,071

Kilograms

Smarties

89,230

82,124

67,080

73,402

Kilograms

Lindt

218,424

220,224

216,779

217,363

Kilograms

Nestle

166,511

181,881

86,820

104,064

Kilograms

Snickers

193,034

191,753

n/a

n/a

Kilograms

Galaxy

317,446

254,595

n/a

n/a

Kilograms

Tang

1,474,674

1,451,957

1,362,388

1,176,877

Kilograms

Nido

1,065,409

986,784

841,139

698,765

Kilograms

 

Source: Dubai Duty Free; compiled by trbusiness.com

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