Left: Muscat Duty Free CEO Renat Rozpravka. Right: Arrivals Duty Free expansion.

Muscat Duty Free (MDF) is building on a year of growth and transformation with a pipeline of new developments in 2025 including an “innovative” new food and beverage concept, which is anticipated to make its debut in early 2025.

“We’re preparing to launch an innovative new concept in Food & Confectionery, the first of its kind in travel retail,” CEO Renat Rozpravka told TRBusiness.

He also relayed how the company has been focusing on “three to four truly exciting projects” in the perfumes and cosmetics category that will serve to “significantly expand” the MDF portfolio.

We have already started to see these being brought to life.

As reported in early December, the retailer revealed a new boutique Ajmal Perfumes at Muscat International Airport, complete with specially designed counters and LED integrated displays to foster ‘seamless customer interaction’.

Cutting the ribbon on the new Ajmal Perfumes boutique at Muscat International Airport.

 More recently, British perfumery company Penhaligon’s launched at Muscat Duty Free in collaboration with ARI Middle East.

“These initiatives are set to bring a whole new level of luxury and exclusivity to our offerings,” said Rozpravka.

Furthermore, these key developments set the scene for what’s to come.

“In 2025, we’re focused on evolution and continuing the progress we’ve made,” he said.

“Our goal is to keep improving every day in how we work and how we serve our passengers.

“We plan to make significant improvements across most of our stores in Departures, further elevating the environment to enhance the customer experience.

“We’re working closely with our brand partners on these upgrades, and there will be a lot of exciting news and developments [in 2025] as we continue to raise the bar.”

Double-digit growth in 2024

MDF’s business was robust in 2024, according to Rozpravka.

“Sales have grown by double digits, driven by an increase in passenger spending and moderate growth in traffic at Muscat International Airport,” he said.

“This strong performance reflects that customers are responding to our initiatives and what we have to offer.”

TRBusiness’ Faye Bartle with Muscat Duty Free CEO Renat Rozpravka at the MEADFA Conference 2024.

The result is born from a two-pronged strategy to continue enhancing the offering and to make shopping even more convenient for travellers.

“Our key focus areas [in 2024] have included elevating the customer experience through innovation, diversifying our product portfolio, and strengthening partnerships,” he said.

“A significant milestone was the expansion of our Arrivals store, which now offers a larger, more optimised shopping space to better cater to the needs of our passengers.

“Additionally, we have enhanced our Shop & Collect service by introducing arrivals lockers, providing customers with a convenient and secure option to collect their purchases upon arrival.”

Turning tourists into shoppers with value messaging

Rozpravka cites Oman’s recovery in air travel post-pandemic and increasing tourism as a major driver of growth for MDF’s duty free and travel retail business.

Muscat Duty Free’s expanded Arrivals store offers a larger, more optimised shopping space to better cater to the needs of passengers.

“The strong appeal of Oman as a holiday destination, supported by focused initiatives to promote tourism, is boosting traffic and is expected to shape the market dynamics for years to come,” he continued.

“On the other hand, we have, however, global economic pressures and evolving customer expectations present challenges.

“We are navigating these by prioritising value – highlighting it more prominently, making it easier for customers to understand, and tailoring different segments of our value proposition to meet diverse passenger needs.”

One of the key challenges MDF is currently facing is global logistics disruptions, which is impacting the on time delivery of goods.

“This poses difficulties in maintaining consistent stock levels and availability for our customers,” explained  Rozpravka.

“Also, fluctuating consumer trends require stores to be more flexible and versatile. Adapting to these changing trends presents its own set of challenges.

“Despite these obstacles, we are actively working with our partners to mitigate delays and to meet our customers’ evolving needs.

Forging stronger connections

 The Muscat Duty Free chief believes the biggest opportunity to strengthen the business moving forward rests on building strong connections with its customers.

A glimpse of Oman National Day celebrations in November 2024.

“By creating tailored experiences, leveraging technology and enhancing services like Shop & Collect, we can personalise shopping journeys and boost customer loyalty,” said Rozpravka.

“Expanding our online presence and integrating seamless omnichannel retail solutions also offer significant growth potential.”

The retailer has brought to fruition a variety of attention grabbing campaigns in recent months, such as with Nestlé International Travel Retail on a lucky draw to win an MG Whale car. Such initiatives will be key to the conversion strategy moving forward.

“Looking ahead, we’re launching a new campaign in Arrivals before year-end, which will be a major step up and will truly excite our customers,” revealed Rozpravka.

“We’re also rolling out fantastic HPP activations in collaboration with our partners, which elevate the shopping experience both visually and experientially.”

Muscat Duty Free has partnered with Kiswa Oman to collect clothing donations to benefit those in need within the local community.

The plans are underpinned by evolving shopper insights.

“Shoppers today increasingly prioritise convenience, value, and digital integration in their shopping experiences,” said Rozpravka.

“To meet these evolving preferences, we’re enhancing convenience through services like Shop & Collect and optimising store layouts for a more seamless experience.

“We’re also focusing on providing clear value by highlighting the best offers and exclusive deals tailored to different customer segments.

“On the digital front, we’re investing in integrated solutions to offer a more personalised, connected shopping journey, ensuring our customers can shop effortlessly across both online and physical platforms.”

Muscat Duty Free picked up the Sustainability & CSR Award at the MEADFA Awards 2024.

Sustainability is also a core focus, with MDF partnering with local communities around the airport each month on new initiatives designed to make a marked difference on people’s lives.

“We also place a strong emphasis on listening to our team, ensuring that their insights help shape our approach to sustainability,” elaborated Rozpravka.

“Additionally, we are committed to environmental responsibility, constantly looking for ways to minimise our impact and contribute to a more sustainable future.”

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