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78% surge in DDF annual sales reflects robust recovery of Dubai Airports traffic

The airport retailer, which will be completing four decades of exceptional growth this year, said its business recorded over 17.3 million sales transactions throughout the year, or an average of 46,912 sales transactions per day

After two challenging years, Dubai Duty Free ended 2022 with a bang as it ushered in the new year by recording a 78 per cent jump in annual sales of Dh6.339 billion for the previous year, reflecting the remarkable recovery in airport traffic.

The airport retailer, which will be completing four decades of exceptional growth this year, said its business recorded over 17.3 million sales transactions throughout the year, or an average of 46,912 sales transactions per day, while 47.302 million units of merchandise were sold.

The sales boom at DDF underscores the robust recovery of the passenger traffic at Dubai International, which has been retaining its status as the world’s busiest airport by international traffic for several years.

Dubai Airports received 18.455 million visitors during the July-September quarter, the biggest number since 17.8 million in the first quarter of 2020. The estimated total traffic for 2022 is 64.3 million after passenger traffic nearly tripled in the third quarter from the same period last year.

For 2023, the annual projection is 77.8 million passengers, and 87.4 million for 2024, which would beat the pre-pandemic level of 86.4 million seen in 2019.

“We are thrilled to announce such a positive year as travel returns, during which the operation went from strength to strength. I would like to thank our Chairman, Sheikh Ahmed bin Saeed Al Maktoum, for his ongoing support and I join him in thanking our great team of staff, our suppliers, and of course our customers, who are fundamental to our continued growth and success,” said Colm McLoughlin, DDF’s executive vice-chairman and chief executive.

The surge in sales reflected the brisk recovery of air traffic during 2022. A sign that the operation was on track for a strong recovery after two challenging years was evident in August when it recorded a 104 per cent increase in sales for the first eight months of the year when sales reached $1.06 billion, said a DDF statement.

Dubai Duty Free’s 39th anniversary celebrations, when the operation offered a 25 per cent discount from the December 18-20, resulted in a shopping spree of Dh107.3 million during the 72-hour period, driving the December sales, the statement said.

DDF said perfume contributed 18 per cent of DDF’s total sales with a turnover of Dh1.134 billion to retain its position as the top selling category. It was followed by liquor, gold, cigarettes and tobacco, and electronics.

Sales of liquor reached accounted for 16 per cent of the total annual sales at Dh1.021 billion. Gold recorded sales of Dh629.292 million (and contributed 10 per cent towards total revenue.

Cigarettes and tobacco came in fourth place with sales amounting to Dh562.347 million and accounted for 9.0 per cent of total revenue while electronics came in fifth place with sales of Dh502.201 million and accounted for eight per cent of total annual sales.

Online sales accounted for 2.54 per cent of the overall sales tally for 2022 and reached Dh161.200 million. Sales in departures sections across the operation totalled Dh5.57 billion representing 88 per cent of total annual sales, while arrivals section sales totalled Dh573.385 million, representing nine per cent of total annual sales.

In line with the growth of the operation, rehiring and recruitment continued with the total employee count now standing 4,663.

Throughout the year, the operation received a total of 19 awards, including its 21st consecutive Business Traveller Middle East Award for "Best Airport for Duty Free Shopping in the Middle East", the Gulf Business “Retail Company of the Year” award and the sixteenth consecutive Global Traveller Award for "Best Duty-Free Shopping in the World.”

— issacjohn@khaleejtimes.com