Key categories and strong year-end drive Dubai Duty Free to record heights – 02/01/08
Source: ©The Moodie Report
By Dermot Davitt
UAE. The key product categories of perfumes, gold, liquor, electronics and tobacco were critical in driving Dubai Duty Free’s amazing AED3.175 billion (US$880 million) in 2007 sales, the retailer said today. As revealed yesterday by The Moodie Report, annual sales surged +24% over last year’s US$712 million.
Perfumes continued to be the highest selling category at Dubai Duty Free in 2007 with annual sales of AED439 million (US$122 million), which represents 14% of total sales. Liquor retained the number two slot with sales of AED415 million (US$115 million) and Gold was the third highest selling category with sales of AED350 million (US$97 million). Electronics, with sales of AED279 million (US$77 million) and Cigarettes and Tobacco with sales of AED249 million (US$69 million) were the fourth and fifth top selling categories respectively.
The top five categories accounted for 55% of total sales in 2007.
The performance was aided by record monthly sales in November and December, when sales hit AED310 million (US$90 million) and AED360 million (US$100 million) respectively. The operation’s 24th Anniversary Day on 20 December, which offered customers a -24% discount on a range of products, resulted in a massive surge in sales. Sales reached AED46.2 million (US$12.8 million) in the 24-hour period which was +58% higher than the former record day set in 2006.
Commenting on the end of a remarkable year, H.H. Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Airports Company and Chairman and Chief Executive of Emirates Airline and Group said: “It has been a fantastic year for Dubai Duty Free who have worked hard to maintain their position as one of the top three duty free operations in the world. I congratulate the team on its achievements and look forward to the year ahead which will see the retail operation more than double with the opening of the new Concourse and Terminal at Dubai International Airport.”
Managing Director Colm McLoughlin said: “We can look back on 2007 as a great year in which the operation went from strength to strength and sales soared to a new high. Such success is the result of a great deal of hard work by the entire Dubai Duty Free team. I would like to thank H.H. Sheikh Ahmed bin Saeed Al Maktoum for his ongoing support and I join His Highness in thanking our growing team of employees at Dubai Duty Free who do a great job keeping the 24-hour operation running 365 days a year.
“Looking ahead, there are great opportunities coming up with the expansion of the retail operation, the opening of the new Warehouse and head office and we are forecasting sales of US$1 billion in 2008. So, all in all, there is a great deal to look forward to in the coming 12 months.”
Managing Director Colm McLoughlin: "2007 was a great year in which the operation went from strength to strength"
In 2007, the operation recorded a total of 18,995,635 sales transactions, translating to an average of 52,000 sales transactions per day, up by +18% on 2006.
The company also noted the many awards that came its way during 2007, including the Frontier award for ‘Airport Retailer of the Year’, the Business Traveller UK award and the Business Traveller Middle East award for ‘Best Duty Free Shopping’, along with the Raven Fox Award for ‘Middle East Travel Retailer of the Year’.
The company said: “On a personal note, Colm McLoughlin was presented with the inaugural award for ‘Outstanding Career Contribution to Airport Commercial Business’ by The Moodie Report – the most widely read online travel and retail information source.”
On the sporting front, the Dubai Tennis Championships, which is owned and organised by Dubai Duty Free, was twice named ‘Tournament of the Year’ based on the votes of players and officials. In September 2007, the operation announced a US$9 million sponsorship agreement with Barclays which has become the title-sponsor of the tournament from 2008 – 2011.
MORE STORIES ON DUBAI DUTY FREE
Year-end flurry spurs Dubai Duty Free to hit all-time US$880 million sales high in 2007 – 01/01/08
Dubai Duty Free celebrates another year of achievement as landmark looms – 31/12/07
Dubai Duty Free 24th anniversary revenues smash all records with incredible US$12.6 million in daily sales – 21/12/07
Festive Forecast: Guess Dubai Duty Free's 24th anniversary sales and win a great prize – 18/12/07