2004 proved to be a remarkable year for Dubai Duty Free with sales surpassing all records to cross US$500 million (Dhs1.8 billion). The half billion dollar milestone represents a 32% increase over last year and underlines the operation’s global status among the top three airport retailers in the world.

Commenting on the annual sales, H.H. Sheikh Ahmed bin Saeed Al Maktoum, President of the Department of Civil Aviation, Dubai said: “The past twelve months have seen exceptional growth with sales consistently running in excess of 30%. Crossing the half billion dollar mark is a significant milestone for Dubai Duty Free and I would like to congratulate the operation on its achievement.”

The month of December was a record month while on December 20th, which marked the operation’s 21st anniversary, daily sales reached a remarkable US$3.1 million (Dhs11.3 million).

The statistics behind the record figures highlight the sheer volume of business handled by the operation, which in 2004 received the Frontier “Airport Retailer of the Year” award for an unprecedented fourth time. In the past twelve months, Dubai Duty Free sold over 41 million products and recorded close to 11 million sales transactions. In the month of December alone, the number of sales transactions crossed the 1 million mark for the first time. The operation witnessed significant growth across all categories with top categories such as Gold increasing by 34% while Perfumes climbed to the No.2 spot with a 38% increase in sales. Sales of Electronics rose by 24%, while Cameras and Accessories rose by 47%. 

While the passenger traffic at Dubai International Airport has increased dramatically over the years, so too has the average passenger spend. The average spend of departing passengers has risen from US$5 to US$43, while the current presentation level is 45%, above the industry norm is 15-20%.

Located in the heart of Dubai International Airport's Sheikh Rashid Terminal, the complex covers an area of some 5,400 square meters, while the operation in Terminal 2 covers over 1,400 square meters. Arrivals shops and landside shops bring the total retail area to over 7,000 square meters.

An ongoing programme of refurbishment at Dubai Duty Free has contributed to significant sales increases in a number of categories. The new ‘Gifts from Dubai’ shop, which opened in June, witnessed a 100% increase in sales in 2004. Similarly, the opening of the new Fashion area last month is already showing an increase in this category with Ladies fashion rising by 60% and Men’s fashion by 39%.  

Looking towards the future, the US$4.1 billion airport expansion, which will include the construction of a new Emirates-dedicated Terminal and Concourse 2 and 3, will provide the operation with a new and even larger retail area. Dubai Duty Free will design, build and operate a shopping area covering over 10,000 square meters which is scheduled to open in 2006.

[www.dubaidutyfree.com]