DDF has a Clear Vision to Grow!

Dubai Duty Free (DDF) has a clear to grow its business, continue to gain loyal customers, and to champion the city of Dubai through all our marketing efforts, its top official says.

Colm McLoughlin, Executive Vice-Chairman and CEO of Dubai Duty Free, said DDF started the new year on a high note by announcing an all-time sales record of $2.16 billion for 2023, reflecting a year-on-year growth of 24.39 per cent.

“The next milestone still has a long way to go but as we look ahead, we will continue with our investment in the development and expansion of our retail offer,” McLoughlin told Khaleej Times during an interview.

Excerpts from the interview:

This year, 2024, what will be the main shopping attractions for visitors and tourists at Dubai airports after successful 4 decades?

Following the completed phase one refurbishment of our liquor and tobacco shops in Concourse B of Dubai International Airport in the last quarter of 2023, the 700sqm of retail space in both the East and West locations of Concourse B have been refurbished with an upgraded look. Another 700sqm of the liquor shop will be finished between March and April of this year. The new liquor shop has a modern design, and there are also new concepts introduced, like the liquor sampling area and the self-checkout counters.

We also started on the preliminary work for the scheduled renovations of the three Arrival shops in the first quarter of this year and the construction will continue until the second to third quarters. Concourse A (2 Perfumes and Cosmetics shops, including Fashion) will also be refurbished starting in the second quarter and will be finished in early to mid-2025 with three new boutiques of major brands. While watches and electronics shops in Concourse B are also lined up for refurbishment next year.

Under the umbrella of DDF, how many hospitality ventures are operating in the UAE? How these ventures performed in 2023 and what do you expect this year?

Under Dubai Duty Free Leisure Group, we have The Irish Village in Garhoud, which celebrated its 27th anniversary last year and continues to do well, as does the one in Studio One Hotel in Dubai Studio City. Likewise, the Century Village, which features seven licensed restaurants and compliments the pub grub at the Irish Village on the other side of the stadium, is also doing well. Meanwhile, the Jumeirah Creekside Hotel has witnessed an increase in rooms reserved overnight last year, and as the official hotel for the Dubai Duty Free Tennis Championships, it has done a fantastic job hosting the players and officials during this year’s tournament. In addition to being the home of the Dubai Duty Free Tennis Championships, the Dubai Duty Free Stadium will continue to host several concerts including the 90’s girl group B*Witched and Eternal who will be performing in May for the Back to the 90s concert.

DDF enters 2024 after celebrating its milestone 40th anniversary on December 20. Any special measures or roadmap set for the new decade to sustain its success/growth?

We started the new year on a high note when we announced an all-time sales record of $2.16 billion for 2023, representing a 24.39 per cent increase over the previous year and 6.4 per cent up on pre-pandemic in 2019. We are thrilled to have achieved our target sales for that year, a record month in December and a record year, which culminated with our celebrations of our milestone 40th anniversary.

The next milestone still has a long way to go but as we look ahead, we will continue with our investment in the development and expansion of our retail offer, to serve and satisfy the passengers in an airport that continues to get busier and busier, provide seamless and convenient shopping experience second to none.

Our vision remains clear: to grow our business, continue to gain loyal customers, and to champion the city of Dubai through all our marketing efforts.

E-commerce is gaining ground in the region. What is DDF plan to use e-commerce platform to promote retail sales? How has it been faring over the last couple of years?

The general rise of e-commerce and associated technologies has led to a shift in consumer expectations, with many travellers expecting the same or a higher level of convenience and personalisation from their shopping experiences at the airport. In our vision for 2025, Dubai Duty Free has set an ambitious digital marketing strategy in line with industry and market trends that is built on fundamental pillars: to drive online and in-store footfall and provide an elevated personalised shopping experience to customers, from product range and exclusive offerings to services at Dubai Duty Free.

How has technology revolutionized the concept of airport retailing and how has DDF adapted to the change?

The past three years have further accelerated the adoption of digital technology, driving the need for robust duty-free and travel retail solutions to support the growth and transformation.

As part of this, we have adapted to the change and saw a necessity to upgrade and reshape our approach to digital marketing to ensure that we continue to raise the benchmark when it comes to providing a happy shopping environment and world-class customer experiences. Dubai Duty Free continues to invest heavily in technology, using in-house data analytics to monitor customer behaviour and preferences, which helps us tailor our product offerin0gs and create better, more meaningful marketing decisions.

Our Click & Collect service, which offers travellers the chance to order goods in advance of their flight, saw an increase in the number of travellers using the service and recorded sales of $6.94 million in 2023. Overall, the total sales from the online channels in 2023 were $45 million and accounted for two per cent of the overall Dubai Duty Free sales, an indicator of the importance of the digital side to the business.

DDF is among the major sponsors for promoting Sports activities in the UAE. How much budget DDF allocate for Sports sponsorships this year?

From the very beginning, part of our brief was to promote Dubai as a sports and leisure destination, and we have always seen sport as a positive way to reach a wider global audience. We calculate the value of our support in a number of ways, including the important media exposure that covers TV, print, and now social media. We also assess our sponsorships in terms of spectator turnout, player participation, and the overall fan experience, all of which reflect on our brand. We spend 2.5 per cent of our sales on promoting and advertising our business. By supporting so many events at the highest level and all around the globe, Dubai Duty Free is effectively promoting Dubai’s sporting, leisure, and business facilities, which are second to none.

St Patrick’s Day

The Irish Village in Garhoud is gearing up for a St Patrick’s Family Day on March 17. In addition, the Irish Business Network will host its annual St Patrick’s Day Breakfast today, 15th March at the stunning Amphitheatre of Madinat Jumeirah featuring excellent speakers and networking opportunities.

I am also delighted to say that as part of international ‘Global Greening’ initiative of Tourism Ireland, The Irish Village in Garhoud will ‘turn green’ to commemorate our national holiday.

Finally, I would like to wish the Irish community in the UAE, a very happy St. Patrick’s Day!

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