Rising air traffic pushes DDF sales up by 27%

03 July 2007

Dubai: Dubai Duty Free's (DDF) sales in the first half of the year climbed 27 per cent to $411 million as a rise in air travellers helped push retail sales higher at Dubai International Airport.

Major gains were seen in top performing categories including gold, which rose by 35 per cent to reach $45 million in the first half of the year.

In men and women's fashion, sales rose by 79 per cent and 68 per cent, respectively. Handbag and leather goods increased by 120 per cent.

The average number of daily sales rose to 44,000, while with the average spending per departing passenger was $45.

"2007 began fantastically well and we have maintained impressive sales across all categories," said Colm McLoughlin, managing director of Dubai Duty Free.

Boost

The sales increase mirrors the rise in passenger growth for Middle East airlines. Yesterday, the International Air Transport Association (IATA) said Middle East carriers saw passenger traffic rise by an impressive 19.6 per cent year-on-year in May, the biggest gain for any region worldwide.

Neil Tunbridge, a retail analyst at GRMC, a Dubai-based consultancy, said Dubai Duty Free's latest announcement is only the latest of some seven years of double-digit growth.

"The number of tourists travelling through the airport has certainly aided sales there," Tunbridge said.

McLoughlin noted, "Renovations that we made to the fashion zone in Shaikh Rashid Terminal, which enabled us to redesign this area and introduce some new and extended ranges, are now being translated into sales."

Duty Free's sales are expected to rise even further in the next two years, when Concourse Two opens with additional retail outlets.

Perfumes maintained the top slot, with sales increasing by 27 per cent in the first half of the year to $56 million.

While perfume sales show no sign of slowing down, McLoughlin acknowledged the fact that the restrictions placed globally on sales of liquids, aerosols and gels have given some passengers cause for concern.

However, he is quick to point out that Dubai Duty Free sales assistants have undergone a great deal of training on this issue and are doing their best to pass on information to customers.

By Ivan Gale

Gulf News 2007. All rights reserved.