DDF Q1 sales up 11% despite excise duty and VAT impact
DUBAI — Dubai Duty Free’s first quarter sales jumped 11 per cent to Dh1.91 billion despite the introduction of excise duty and VAT at arrivals terminals, signalling a positive start to 2018 on the back of record sales of Dh7.05 billion in 2017.
Sales in March reached a new monthly record of Dh660.36 million, which represents a 10 per cent increase over March 2017. So far this year, monthly sales are in excess of Dhs600 million, with an average daily sale of Dh21.23 million, DDF said in a statement.
Colm McLoughlin, Executive Vice Chairman and CEO of Dubai Duty Free, said sales are ahead of passenger numbers at Dubai International Airport and “we are seeing double digit growth across a wide number of categories.”
“While the introduction of VAT and excise duty in our Arrivals Duty Free has resulted in a drop in revenue in these areas, the fact that VAT is not applicable for the majority of sales in Departures has contributed to an increase in certain categories for departing and transit passengers,” said McLoughlin.
Sales across all three terminals at Dubai International Airport showed an upward trend, including a 14 per cent increase in Terminal 2 and a 13 per cent increase in sales in Terminal 3. Liquor, per- fumes and tobacco held the top three spots category-wise in the first quarter of the year. Perfume sales reached over Dh276 million, accounting for 14 per cent of total revenue. Sales of tobacco was up by 37 per cent to Dh220 million while cosmetics was up by 25 per cent to Dh183 million accounting for 10 per cent of total sales. Other categories showing robust growth included Electronics, up 34 per cent to Dhs169 million while Watches rose by 16 per cent to Dh127 million.
“There are a number of factors behind the sales growth, including the refurbishment of Concourse C, which will be fully completed shortly and other ongoing projects,” said McLoughlin.
He said Dubai Duty Free would continue to enhance its retail operation in 2018 including the expansion of the Passenger Terminal Building at Al Maktoum International, a Fashion revamp in Terminal 3-Concourse B and refurbishment of Terminal 1-Concourse C.