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