DUBAI: Dubai Duty Free (DDF) has concluded the year 2024 on an exceptionally high note, achieving a remarkable annual turnover of AED7.901 billion (approximately $2.16 billion).
The milestone was significantly bolstered by a substantial surge in sales during the latter part of the year, culminating in an unprecedented December performance that set a new monthly sales record.
In December alone, DDF recorded sales amounting to AED821.94 million ($225.19 million), marking a two per cent increase over the previous December, which had previously held the title of the highest-grossing month in the retailer’s history.
The performance was largely attributed to the festive celebrations marking the 41st anniversary of Dubai Duty Free on December 20. On this occasion, the retailer offered an enticing 25 per cent discount on a wide variety of products, resulting in a shopping frenzy that generated AED59.99 million ($16.44 million) in sales within a mere 24 hours.
The promotional event not only attracted a significant number of customers but also highlighted DDF’s ability to engage shoppers through strategic marketing initiatives.
Standout performer
The upward trajectory in sales was further evidenced by strong figures from November, which also outperformed the previous year. Notably, the confectionery category emerged as the standout performer in December, boasting an impressive 29.46 per cent increase in sales compared to December 2023.
The trend underscores the evolving preferences of consumers and the effectiveness of DDF’s product offerings in catering to these demands.
Throughout the year, DDF recorded a staggering 20.733 million sales transactions, averaging 56,649 transactions per day. In total, over 55.137 million units of merchandise were sold, reflecting the retailer’s robust operational capacity.
An estimated 13.7 million customers frequented DDF’s arrivals and departures stores in 2024, demonstrating the retailer’s pivotal role in the travel retail sector.
While the performance of departure sales remained strong, edging up by 0.84 per cent year-on-year to AED7.121 billion ($1.951 billion) and accounting for 90 per cent of total turnover, the arrivals segment faced challenges.
Sales in arrivals declined by 12.21 per cent to AED537 million ($147 million), constituting 6.8 per cent of annual sales, attributed to various factors, including shifts in travel patterns and consumer behavior post-pandemic.
DDF also made strides in its online retail segment, with digital sales reaching AED197 million (US$54 million), representing 2.5 per cent of total annual sales. The growth in online transactions reflects a broader trend in the retail industry, where e-commerce continues to gain traction, particularly in the travel retail space.
Looking to the future, Dubai Duty Free is committed to enhancing its retail operations. The completion of the final phase of renovations in the arrival shops across the three terminals is anticipated early this year.
The investment in infrastructure aims to further elevate the shopping experience for travelers, ensuring that DDF remains at the forefront of the travel retail market.
