Dubai Duty Free posts double-digit sales growth in first quarter
Source: ©The Moodie Report
By Dermot Davitt
The Concourse A opening buoyed Dubai Duty Free's continued growth in Q1
Dubai Duty Free Q1 sales hit US$438 million, representing a +12% increase over the same period in 2012. The relentless pace of growth comes as the retailer prepares to celebrate its 30th anniversary in December.
Liquor, fragrances and gold remain the top three categories by sales value. The number one category, fragrances, rose by +16% to reach US$67 million. Confectionery sales also grew by +16% to US$36 million, electronics climbed by +12% to reach US$33 million, while cosmetics sales were up +13% at US$30 million and watches grew by +23% to reach US$27 million.
Sales in Terminal 3, which is dedicated to Emirates operations, rose by +19% and continues to be the biggest in terms of total sales for Dubai Duty Free, accounting for 61% of turnover. The average spend of passengers in Terminal 1, which accounts for 31% of sales, is higher. Sales in Terminal 2 rose by an impressive +22% for the first quarter.
With the opening
of Terminal 3’s Concourse A in January (subject of a specially commissioned book published by The Moodie Report), Dubai Duty Free’s retail footprint at Dubai International grew from 18,000sq m to the current 26,000sq m.
Fragrances retains its position as the retailer's number one category by sales value
Executive Vice Chairman Colm McLoughlin said: “We have had a very good start to the year and no doubt the opening of Concourse A has contributed towards this. The new facility has been extremely well received by passengers and it has enabled us to introduce a number of firsts, including a retail offer in the Emirates First Class lounge in Concourse A, which is doing very well. We have also been able to extend our existing product range and introduce some new brands, some of which are unique in the region.”
In line with its recent expansion of the retail operation, recruitment at Dubai Duty Free continued apace in the first quarter of 2013 with 648 new sales assistants appointed, bringing total staffing levels to 5,717.
Watches were among the strongest performing categories, with sales up +23%