DDF home delivery sales reach around $13 million

By Andrew Pentol |

Colm McLoughlin, Executive Vice Chairman and CEO, Dubai Duty Free

Dubai Duty Free (DDF) has revealed sales from its home delivery service have reached around $13 million (as of 13 January 2021) since the concept was introduced at the end of June 2020.

Total DDF sales last year slumped -65% to $697 million compared with the $2.029 billion generated in 2019.

Launched in around four weeks, the home delivery service for UAE residents allowed people to shop while the airport was closed. Fashion, beauty technology and food are among the categories available.

As reported, the home delivery service also proved a big hit during DDF’s three-day 37th anniversary discount campaign last month (18 December to 20 December), which generated sales of US$19m.

Total home delivery sales during the campaign amounted to US$1,086 m. In addition. There were 2,398 orders and 12,917 units sold to home delivery customers and the best-selling categories included perfumes and cosmetics, fashion, food and watches.

Colm McLoughlin, Executive Vice Chairman and CEO, Dubai Duty Free told TRBusiness: “We are trying to introduce new things and the home delivery service has worked very well for us. We are learning from it and selecting products that people want and for the number of orders coming in.”

NEW CLICK-AND-COLLECT ‘BUZZ’

DDF has also given ‘a new buzz’ to its click-and-collect service, which has been running for a number of years. “We are promoting that a little and finding that more and more people are actually using it to order in advance and collect products at the airport.

“The click-and-collect service has a positive feel about it for the coming year and has been enthusiastically supported by all our staff.”

Dubai Duty Free sales slumped -65% to $697 million in 2020 due to the impact of the Covid-19 pandemic.

Looking ahead to 2021, McLoughlin commented: “Our budget for 2021, based on the traffic forecast, is just a little bit more than last year. We are expecting around $750 million.

“Things have started a little bit better. We are counting passengers and flights every day, but of course they are way down on the beginning of last year. This is because Covid-19 did not have an impact on last year’s numbers until March perhaps. The number of flights remain well down if you compare them with 2019, but it is positive.”

“Our team and staff, along with everyone at Dubai Airport are very optimistic about what is going to happen,” McLoughlin remarked.

The retailer marked its 37th anniversary last month with a three-day discount campaign which generated sales of $19 million.

The need for positivity tinged with realism is necessary in the current climate. “It is important to be positive, but realistic. I believe this and the team believe this, but of course we are not unique as every airport in the world has experienced difficulties.”

Offering an update on planned re-openings at Dubai and Al Maktoum International Airports, McLoughlin stated that Concourse D and Concourse A could re-open at the end of March and in May respectively, depending on traffic.

Changes to store layouts have been implemented in Dubai Duty Free shops to comply with safety requirements and protect against Covid-19.

As first reported, DDF resumed trading Concourse B West on 3 June 2020 in the first phase of a staggered revival programme. DDF had submitted proposals to relevant authorities concerning the safe re-opening of shops shortly after the Eid holiday period in May 2020.

“The second airport (Al Maktoum) remains closed and could re-open in September or October. Once again, it depends on how much traffic increases and how much Covid-19 is controlled everywhere in the world. The authorities in Dubai are doing a very good controlling things here.”

Stay close to TRBusiness for a video interview with Colm McLoughlin, Executive Vice Chairman and CEO, Dubai Duty Free.

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