Business | Retail
Dubai Duty Free posts double-digit sales growth
Increases have been achieved in all three terminals
- By Aya Lowe, Staff Reporter
- Published: 00:00 November 3, 2011
- Image Credit: Javed Nawab/Gulf News archive
- The Dubai Duty Free at Dubai International Airport’s Terminal One. Sales of gold in the Duty Free outlets saw a significant increase of 23 per cent in the last ten months to Dh484 million.
Dubai: Dubai Duty Free achieved sales growth of 16 per cent as of the end of October. Sales, which reached Dh4.238 billion, are on track for the year-end target of Dh5.3 billion.
Colm McLoughlin, executive vice-chairman of Dubai Duty Free, said: "2011 is shaping up to be a record year and we have seen significant increases across the top categories and in the sale of premium goods such as luxury watches and fashion items.
"We have also seen electronics grow significantly, driven by the launch of new desirable products featuring the very latest technology.
"We are looking forward to the remaining two months of the year which are traditionally amongst our busiest."
Sales of gold at Duty Free outlets saw a significant increase of 23 per cent in the last ten months to Dh484 million.
"Gold has always been one of our top three selling categories and a popular purchase for primarily Asian subcontinent and Middle Eastern passengers," McLoughlin said.
"Gold is seen both an investment and a desired item for gifting or for personal use."
Other categories that have seen an increase include electronics, which rose by 19 per cent to Dh331 million, confectionery, which increased by 10 per cent with sales of Dh319 million, watch sales, which were boosted by 27 per cent to Dh280 million and cosmetics, which rose by 22 per cent.
Perfumes, which account for 14.6 per cent of total sales, holds the biggest market share with sales reaching Dh616.5 million.
According to McLoughlin, Dubai Duty Free is seeing a return in consumer confidence among Europeans who are buying luxury goods again. The Chinese passengers are also driving the sales of premium products.
Luxury sales
"The Chinese passengers are driving high-end luxury sales," he said.
"They are very brand conscious and know what they want in terms of fashion, leather goods and items like luxury watches.
"In October for example 40 per cent of luxury watches sold at Dubai Duty Free were bought by Chinese travellers.
"Electronic sales are also way up on last year and that is driven by the launches of new products such as smart phones and tablets, and consumers are keen to get their hands on the latest [products."
Dubai Duty Free has seen increases in sales across all three terminals for both departing and arriving passengers. In Terminal One the retail outlets recorded a 14 per cent increase, Terminal Two has shown a 36 per cent increase while Terminal Three's sales increased by 15 per cent. Arrival sales across all terminals are up by 16 per cent.
This boost follows an increase in passenger traffic. Dubai International Airport reported an increase of 7.8 per cent during the first nine months of this year. Passengers from the GCC accounted for the largest increase in September (up 169,445), followed by Western Europe (up 36,916), South Asia (up 29,261), and Russia and the Commonwealth of Independent States (up 23,431).
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