Dubai Duty Free eyes $3bn sales
Dubai Duty Free tills rang up Dh2.7 billion in sales in the first five months of the year.
The airport hopes to sustain the momentum by selling to about half of the people passing through the hub.
And the number of passengers is expected to rise with the emirate’s annual shopping festival, Dubai Summer Surprises, which runs until July 7.
“The Dubai Summer Surprises attracts a great many visitors to Dubai and as a result many of them travel through Dubai International Airport and shop at Dubai Duty Free,” said Colm McLoughlin, the executive vice chairman of Dubai Duty Free.
“[With] the increase in passengers as the busy summer season picks up a notch, our sales should increase.”
Sales received a boost earlier in the year with the opening of Concourse A, which added 8,000 square metres of extra retail space.
“We have also seen significant increases in sales in other terminals for both departing and arriving passengers, all of which are very encouraging and would help reach our sales target of US$1.8 billion by year-end,” said Mr McLoughlin.
However, the company predicts its sales could reach US$3 billion annually in a few years as the airport significantly boosts its capacity.
“[The] opening of Concourse A will be followed within a couple of years with the opening of Concourse D.
“By this time, Dubai International Airport will boost its capacity to 95 million passengers and our sales are expected to reach $3bn by that stage,” said Mr McLoughlin.
Dubai Duty Free made Dh5.9bn in revenues last year, with sales including 23,000 iPads, two tonnes of gold and more than two million bottles of perfume as 57 million passengers passed through the airport. The purchases generated almost Dh1.5bn in profits for the airport retailer, more than that of retail brands such as Harrods and Selfridges.
Passengers passing through Abu Dhabi airports last year spent Dh809.5 million on gifts, cigarettes, perfume and other Duty Free items, as revenues rose by 24 per cent compared with 2011, setting a new record for the company.
Abu Dhabi Airports Company expects Duty Free revenues to more than double to reach Dh1.5bn by 2017, when capacity will reach 20 million passengers a year with the opening of the new Abu Dhabi Midfield terminal.