DDF implemented a wave of upgrades across its commercial estate in 2024.

Dubai Duty Free (DDF) confirmed today (1 January) a new annual sales high of Dhs7.901 billion/US$2.164 billion in 2024.

As anticipated, DDF surpassed the US$2 billion threshold after recording sales of $1.94 billion up to the end of November.

The operation benefitted from a late spending rush to the tune of dhs59.993 million/US$16.436 million as consumers flocked to avail of discounts in the annual 24-hour anniversary promotional campaign in December.

The 2024 headline result produced a marginal uplift (+0.2%) on last year’s $2.16bn revenue haul in its 40th anniversary year.

A healthy showing in the earlier part of 2024 gave way to more muted performances against budget in the months following May, with declines recorded in many of the major categories save for perfumes and tobacco – notably in the fashion, liquor and technology segments – that acted to stifle growth, DDF Managing Director Ramesh Cidambi relayed to TRBusiness in recent months.

The situation has been compounded by a decrease in year-on-year sales from important markets such as Russia and the Indian subcontinent, amid other factors including price indexing against domestic markets and promotional mechanics, though overall trading began to pick up again in the second half of September.

Click below to watch an in-depth video interview with Ramesh Cidambi during the TFWA World Exhibition & Conference in Cannes, where DDF won ‘Best Diversity & Inclusion Initiative’ in recognition of its employee engagement activities.

November/December push

The top five selling categories in 2024 were perfumes (Dhs1.50bn/US$411m); followed by liquor (Dhs1.056bn/US$289m); cigarettes & tobacco (Dhs807m/US$221m); gold (Dhs779m (US$213 million); and electronics (Dhs546m/US$149m).

Online sales topped Dhs197m (US$54m) accounting for 2.5% of the overall sales tally for the year.

Departures sales registered Dhs7.121bn (US$1.951bn), representing 90% of total annual revenue and growth of +0.84% year-on-year, while arrivals sales notched Dhs537m (US$147m), 6.8% of total annual sales and a decline of -12.21% over last year.

More than 20.733 million sales transactions were recorded throughout the year, an average of 56,649 sales transactions per day, with 55.137 million units of merchandise sold.

DDF estimates that more than 13.7 million customers shopped in DDF’s arrivals and departures stores in 2024, a year tinged with sadness in the latter half following the passing of industry pioneer and former DDF Executive Vice Chairman and CEO Colm McLoughlin – click here to read the obituary.

December itself set a new record with sales of Dhs821.944m/US$225.190m, a 2% increase on the same month in 2023.

The Salon Prive in the newly renovated arrivals shop in Terminal 3.

Dubai Duty Free, Managing Director, Ramesh Cidambi, said: “We had a terrific November and December and the last week in December was particularly good with the staff really pushing hard to get beyond 2023’s record year. Despite all the major renovations and refurbishments that took place, I am very happy with the way the year has turned out.

“I am very grateful for the support that I have from our Chairman, H.H. Sheikh Ahmed bin Saeed Al Maktoum and I join His Highness in thanking our front and back-office staff, our suppliers and our customers for their contribution towards another great year.”

A total of 6,030 staff comprising 54 nationalities represent DDF today, with Cidambi adding: “In addition to adding to our diverse sales force this year we also strengthened our senior management team with the recruitment of eight senior managers in key roles, which include seven UAE Nationals. The new senior managers have integrated very well and are a key part of our 5-year business plan (2025-2029).”

Sales from arrivals shops, which accounted for 6.8% of total annual sales, posted a decline of -12.21% year-on-year to Dhs537 million/US$147 million. Pictured is an arrivals shop at Dubai International Airport Terminal 3.

As reported, DDF is continuing with planned enhancements including the completion of the final phase of renovations at its arrivals shops across the three terminals at Dubai International Airport (DXB).

The L&T units at Concourse B’s East and West zones have benefitted from significant upgrades, while the construction projects at arrivals are due to conclude in early 2025.

The P&C shops on the East and West areas of Concourse A will also undergo a major facelift in 2025 alongside enhancements to the gifting offer and the opening of three new fashion boutiques, including Louis Vuitton, while Concourse B’s luxury watches and electronics shops will receive a makeover during 2025 and 2026.

At 19% of total sales, perfumes defended its position as the leading sales driver with growth of +9.79% over 2023. Despite taking a 13% share of total annual sales, liquor posted a decline of -6.6% over last year. Cigarettes & tobacco contributed 10% towards total revenue with growth of +8.27% on 2023. Gold ranked in fourth place, taking a 10% slice of total revenue. In fifth position, electronics accounted for 7% of total annual sales and suffered a 13% decline year-on-year.

The Concourse A renovations are expected to start in early 2025 and complete by late 2026.

The travel retailer’s busy event and promotional calendar in 2025 kicks off in earnest with the Dubai Duty Free Tennis Championships, to be staged at the Dubai Duty Free Tennis Stadium from the 16 February – 1 March 2025.

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