Duty Free sees double-digit sales growth on strong passenger traffic

Dubai: The Dubai Duty Free is expecting double digit sales growth for 2010 propelled by increasing passenger traffic through Dubai International Airport.

Sales were up by 14.5 per cent to Dh3.2 billion by end of September compared to the same period last year, according to the Dubai Duty Free, which expects year-end sales to reach an estimated Dh4.5 billion.

With that Dubai Duty Free would maintain its position as the world's largest single airport retail operater, a title it achieved in 2009 based on the then sales figure of $1.14 billion.

According to Euromonitor International, Dubai continues to be the Middle East's business, financial and tourism hub.

"With the recently opened Dubai Terminal 3 witnessing its 50 millionth passenger on September 7, 2010, the increase in passenger numbers is having a positive effect on the Dubai Duty Free sales," the global research company's spokesperson told Gulf News.

Dubai Airport recorded a 14.7 per cent increase in passenger traffic by the end of September compared to the same eight months in 2009.

A total of 30.84 million passengers used the airport. Paul Griffiths, CEO of Dubai Airports, told Gulf News in September that over the past 12 months rolling passenger numbers rose to 45 million. "Which puts us on track to meet our projection of 46 million," he added.

Colm McLoughlin, managing director of Dubai Duty Free, expressed his satisfaction with the penetration level and average spending since the beginning of this year.

"Sales have been consistently at a high. We are heading into a busy sales period in the final months of the year and are optimistic that the year will result in record turnover," he said.

Perfumes are holding on to the top position, accounting for 14 per cent of total sales and amounting to Dh456 million ($127 million) for the first nine months of 2010. This represents a 16 per cent increase over the same period last year.

Liquor comes second with sales of Dh442 million, an increase of 13 per cent, followed by Dh347 million in gold sales, an increase of 11 per cent.

"Perfume remains the best selling product at Dubai Duty Free ahead of liquor. With the holiday season fast approaching Dubai Duty Free can look forward to a robust end to an already highly profitable year," Euromonitor International's spokesperson added.

Electronics sales were up 8 per cent to Dh245 million, watches by 29 per cent to Dh192 million, cosmetics 24 per cent, confectionery 13 per cent and delicatessen 14 per cent, which seems to confirm the positive sentiment.

Winner announced

It has been 11 years since Dubai Duty Free conducted its first draw for the Millennium Millionaire promotion, which offers 5,000 ticket holders the chance to win $1 million (Dh3.67 million).

Tuesday the 110th millionaire was announced at the draw conducted at the Dubai International Airport and the lucky 110th winner is Sandeep Sasidharan, the 44th Indian national to win the prize.

Sasidharan, who is based in Dubai, bought his winning ticket No 2182 online on August 24. He cannot be contacted at the moment but will be very surprised when he learns about the news.

A presentation was made to previous $ 1 million winner Jason William Saldanha, who was delighted to accept his cheque right after the new winner was announced.

Saldanha, a 50-year-old engineer who works for Gulf Rope and Plastics Products Company in Sharjah, was excited to witness the draw and said that he will continue to participate in the promotion in the hope of winning the second time around.