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Dubai Duty Free: Commitment to quality

His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai with Colm McLoughlin

Colm McLoughlin, Executive Vice Chairman, Dubai Duty Free (DDF), has been with the company since its inception in 1983. He is synonymous with DDF operations having played a vital part in making it a world-renowned organisation. He recollects the past and peeks into the future in an interview with Khaleej Times.

An affable personality, he loves to talk, have fun, crack jokes and help people when the opportunity arises. As a senior professional in the industry, McLoughlin is considered to be fair, accepting people at all levels whether it is in his work or personal life. He firmly believes that everyone is equal and should be given equal opportunities in life.

McLoughlin enjoys going to work every day and loves the opportunities that his job offers him. “You’ve got to be fair with people, encourage, promote, motivate, help, train and thank them. Be an example to others. Make sure you do things properly. You have to work hard and do what you believe in. A leader has a responsibility to look after those working in the team,” he reveals about his mantra in life, which is ‘keep it simple’.

McLoughlin feels that it is incredible that 30 years have passed so quickly and looks back with satisfaction about what has been achieved in Dubai Duty Free, Dubai and the UAE in this relatively short space of time. “I am very proud to have been part of the success story that has been Dubai Duty Free and to have seen our company grow to be No. 1 in the world. I am equally proud to see our team grow from the original 100 to 6,000, and the fact that we still have 44 of the original 100 working for us is a great achievement. George Horan, one of the original team of 10 from Shannon who is our current President, and myself are included in that 44, which we call the ‘Pioneers’,” he says.

McLoughlin is also very grateful for the support that the organisation received over the years from the Government of Dubai and in particular from his boss H.H. Shaikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman of Dubai Duty Free.

The foundation of DDF has always been to offer world-class service with a wide range of quality products that provide value for money in a shopper friendly environment. These core attributes are still adhered to while keeping it simple and looking after customers and staff as a priority.

Today, the Dubai Duty Free brand is very much associated with the growth and development of Dubai. People have grown up knowing and liking the brand and they trust its products and service. “I like to think that there is an emotional attachment to our customers and our brand and our greatest brand ambassadors are our team of sales staff who I think are amongst the best trained in the world,” McLoughlin adds.

HH Shaikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman of Dubai Duty Free with Colm McLoughlin holding the DFNI Asia/Pacific ‘Middle East Travel Retailer of the Year’ Award

DDF and Dubai

DDF and Dubai possess a very close relationship. Since the very beginning in 1983, Dubai Duty Free has been part of the promotion of Dubai as a leading business and leisure destination. It is worth noting that DDF was probably the first company back in 1983 that was a government entity tasked with doing this. Many more companies have since followed and continue to do a great job in placing Dubai and the UAE on the map. “But the fact that we were there from the early days of Dubai’s promotional push is very special to how people perceive the brand and the company. To this day, when we are considering sponsorships, we always look at a few things, one of which is how any sponsorship can benefit our brand, as well as what sort of impact an event will have on the overall exposure for Dubai and the UAE,” he emphasises.

The Dubai Duty Free shopping complex in Concourse C

Vision for DDF

McLoughlin explains his vision for DDF knowing that Dubai has won the World Expo 2020 bid. “Our expansion plans have run in tandem with the strategy and plans for development at Dubai International Airport and Al Maktoum International at Dubai World Central. By 2020, our operation and sales would reflect that growth and expansion. Now with Dubai winning the World Expo 2020 bid, we can expect to accelerate some of those plans especially in relation to Dubai World Central and that is all very exciting.”

Elaborating on the operations at Al Maktoum International he says, “Our retail operation opened on October 27 when the passenger terminal at Al Maktoum International was officially inaugurated by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. We currently have 2,500 square metres of retail operation there and that, of course, will grow in line with the development plans for the terminal. Ultimately, we expect the retail offer to cover some 64,000 square metres.”

Growth trends

Elaborating on the next phase of growth for the DDF industry, he says, “The next phase will be the opening of Concourse D at Dubai International Airport which is scheduled for late 2014. This terminal will be for all non-Emirates, Qantas and flydubai flights and will be an important development for the entire airport.

“Dubai Duty Free will operate around 7,000 square metres of retail space in Concourse D, mainly located around a central atrium, which will be very nice. Our expansion plans in Al Maktoum International are very much linked to the plans of Dubai Airports and the airlines, but as mentioned earlier, ultimately we are looking at a retail area covering 64,000 square metres which is 50 per cent more than we currently operate at Dubai International Airport.”

One of the latest trends in the Duty Free industry, according to McLoughlin, is the demand for high-end luxury goods, which is being mainly driven by the growth of the Asian travellers and in particular the Chinese. “Chinese passengers currently make up 4 per cent of total traffic at Dubai International and yet they account for 12 per cent of our sales, so they are obviously big spenders. Our response to this growth has been to recruit over 570 Chinese staff, to have specific promotions especially around the time of the Chinese New Year and to increase signage in Mandarin. We also accept the Chinese currency and the Union Pay card, the biggest card in China.

“But of course our job is to ensure that all of our passenger needs are catered to and we are equally conscious of providing passengers travelling to the subcontinent with their goods, whether it is Nido powdered milk, of which we sell over 956 tonnes per year, or bars of gold which are purchased as an investment. We try to meet all demands,” he says.

Expanding at such a rapid rate of course raises some challenges. “Since the opening of Terminal 3, Concourse B in 2008 and the opening of Concourse A in January this year, there has been tremendous growth which of course impacts our operation. Our retail footprint grew by 16,000 square metres and our staffing levels increased dramatically to accommodate this expansion. From a logistics point of view, we had to build a purpose-built distribution centre, which we opened in 2008 and which covers 27,000 square metres. The warehouse is 95 per cent automated and is capable of ensuring that stock is moved from there to all points at Dubai International Airport and now Al Maktoum International. We really have to stay one step ahead of the growth in order that our staffing levels, our technology and of course our product offer are on par or exceeding our growth,” McLoughlin adds.

Colm McLoughlin with Ramesh Cidambi and Stewart Caddick at the phased opening of Concourse A

Foremost achievement

What would he consider his foremost achievements in 30 years along with the hundreds of awards that DDF received? “The fact that we have had the support from the Government of Dubai over the past 30 years, and in particular the support of my boss, HH Shaikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman of Dubai Duty Free, to develop the retail operation to be the leading in the world. I also think it is a great achievement to remain motivated and happy doing a job that I love for the past 30 years,” he says.

McLoughlin acknowledges the contribution of his family as well. “My wife Breeda is a great support to me over the past 30 years and I thank her for that. My son Niall who lives in Dubai and his wife Sherly, along with my daughters, Tyna and Mandy, son-in-law Mike, and two grandchildren, Erin and Ethan, who live in the UK are a great source of pride and joy.”

I remember… I remember the pavements and the sidewalks were all sand from the airport to the Clock Tower. There were hardly any big buildings then. The airport had only two conveyor belts that serviced three million passengers. I remember taxis with plastic seat covers. We’d sit in the taxis with no air-conditioning and during summer we’d get stuck to the plastic. I remember crossing the creek in a little boat to look for suppliers for the Duty Free. Almost 5,000 square feet of stores was all we had and it was not air-conditioned. I remember training the first group of staff. We did it outside a building site at the airport standing on a plank across two barrels in the middle talking to the staff. I remember the buzz, the excitement and the opportunity when we opened the Duty Free the first day and we had sales of Dh160,000. We started the Duty Free with 100 people. Thirty years later, we are very happy we still have 44 of them working for us. We call them “the pioneers.” Initially we had 10 nationalities working for DDF. Today, we have 51.