Nine-month sales growth of +10% to September has put Dubai Duty Free in a good position to produce year-end sales of US$1.64 billion as it heads into the final quarter.

 

Sales to September hit US$1.14 billion, with perfumes, liquor and gold continuing to be the top three selling categories at DDF.

 

With perfume sales reaching US$173 million, up +15% over last year (cosmetics on its own was up +16% to US$73 million),  a second perfumes and cosmetics retail area in Concourse B is planned by the end of the year at Terminal 3 covering 240sq m. P&C now accounts for a 15% share of total DDF revenues.

 

Colm McLoughlin (left), Executive Vice Chairman of Dubai Duty Free says: “In the case of perfumes and cosmetics, which are core categories, we have had several developments this year including the opening of a Jo Malone retail area in Concourse B, a second Kiehl’s area, this time in Concourse C in Terminal 1 and the installation of a Tom Ford unit also in Concourse C.

 

“The opening of a second P&C area in Concourse B later this year will enable us to extend our existing product range and to introduce some new brands that we have not formerly been able to have do due to space constraints in the existing shops.”

 

Meanwhile the second and third rated categories, Liquor and Gold, achieved sales of US$168 million and US$114 million respectively for the first nine months while confectionery grew by +17% to US$91 million accounting for 8% of total revenue.

 

SALES BY TERMINAL

Sales grew across all three terminals: terminal one sales were up by +9%, terminal two rose by +15% and terminal three was up by +10% over the same period last year.  Departure grew by +10% while arrivals duty free sales rose by +14%.

 

Dubai Duty Free will celebrate its 29th anniversary on 20 December and the operation is planning to make it memorable. The anniversary day will be marked by a -25% discount on a wide range of merchandise, for what has now become an annual event.

 

“We started this promotion when we celebrated our 20th anniversary in 2003 and it has become a popular day with travellers, some of whom book their flights in order to shop on that day,” says McLoughlin.  “Last year, we achieved magnificent sales of US$24 million or US$1 million per hour on the anniversary day, and we are looking forward to trying to break that record.”

 

In readiness for the opening of Concourse A in the first quarter of 2013, Dubai Duty Free has recruited 1,053 new staff this year and will end the year with around 5,000 employees in total. Of the original 100 staff recruited in 1983, 47 are still in active service.