December Sales Maintain Dubai Duty Free's $2.15 Billion Revenue Level, Reflecting Stability Compared to 2023's Figures.
Dubai Duty Free, the main retailer at Dubai International Airport, which is the world's second busiest after Atlanta, ended 2024 with sales of $2.15 billion (7.901 billion UAE dirhams) after boosting efforts in December to surpass the 2023 record of 7.885 billion UAE dirhams.
The sales figure was slightly higher than that of 2023, but in USD, it was lower due to exchange rate variations. Dubai Duty Free was the first significant duty-free retailer to release its 2024 figures, and these figures may indicate challenging conditions in the airport sector, although Dubai Duty Free is unique among major travel retailers due to its exclusive operation in Dubai.
The strong sales performance in December, which generated record sales of $225.2 million, a 2% increase compared to the same month in 2023, enabled the retailer to surpass the previous year's figures. Dubai Duty Free's 41st anniversary celebrations, which included a 25% discount on December 20, contributed $16.4 million over 24 hours. December 2023 sales were $221 million.
The airport has yet to release its 2024 statistics, but in mid-November, it forecast full-year traffic of 91.9 million, a 5.6% increase compared to 2023. Dubai Duty Free's 0.2% revenue increase, however, fell short of its potential growth, signaling a weakening in consumer demand.
Nevertheless, the retailer was satisfied. In a statement, Dubai Duty Free's managing director, Ramesh Cidambi, said, "We had a fantastic November and December, and the last week of the year was particularly successful with the team putting in a great deal of effort to surpass 2023's record year. I am very pleased with how the year has turned out."
Dubai Duty Free's online sales increase by 20%
The retailer, the largest duty-free operator in the Middle East, underwent renovations and refurbishments during the year and recorded over 20.7 million transactions, selling over 55.14 million units of merchandise to an estimated 13.7 million shoppers in its arrivals and departures stores.
Departure sales, which account for 90% of the total, increased by 0.84% last year to reach $1.95 billion, while arrivals saw a significant decrease of more than 12% to $147 million.
The top categories in 2024 were perfumes ($411 million), liquor ($289 million), cigarettes and tobacco ($221 million), gold ($213 million) and electronics ($149 million). Among the top five categories, liquor and electronics saw a decline in sales by 6.6% and 13% respectively. Online sales, on the other hand, grew significantly, reaching $54 million, a 20% increase, and now accounting for 2.5% of revenue.
Staff recruitment continued in 2024, with the number of employees reaching 6,000 and representing 54 different nationalities. Dubai Duty Free also appointed eight senior managers to key roles, including seven UAE nationals. "The new senior managers have integrated well and are a crucial part of our five-year business plan (2025-2029)," Cidambi said. Dubai Duty Free lost its long-time CEO Colm McLoughlin at the end of October 2024.
Renovations are planned for this year, including an upgrade of arrival shops and major refurbishments of luxury watches and electronics shops in Concourse B, which will continue until 2026. Meanwhile, in Concourse A, major beauty and gift store refurbishments will take place, and three new fashion branded boutiques will open by late 2026.
The remarkable growth in online sales at Dubai Duty Free, the largest duty-free operator in the Middle East, saw a 20% increase in 2024, reaching $54 million. Dubai International Airport, home to Dubai Duty Free, forecasted full-year traffic to increase by 5.6% in 2024, highlighting the importance of duty-free shopping in the Middle East's travel retail sector. Despite the decrease in sales for liquor and electronics categories, Dubai Duty Free continues to expand its operations, with plans for major renovations and refurbishments in both Concourse A and B throughout 2026.
