Abu Dhabi Duty Free forecasts 24.5% sales increase

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ADDF reports that a sales increase of over 20% in the year to date has boosted its profits by 4%

Abu Dhabi Duty Free (ADDF) has forecast a year-on-year sales increase of 24.5% for 2004, after revealing that revenues are already up by 20.45% in the year to date, with profits up by 4%.
 
ADDF, which did not reveal exact figures, said average passenger spend had increased by 6.8% year-on-year in the first eight months of 2004, with liquor and tobacco sales up by 10.4% and food & confectionery up by 6.4%.
 
Deputy managing director Dan Cappell said the performance was the result of a two-year plan. "This is a direct reflection of the four commercial pillars that we have now focused on for two years; driving footfall in store, driving conversion to purchase, increasing average spend and meeting our 2004 profitability objective."
 
Cappell added that the result was particularly pleasing after exchange rate movements ?created havoc in some categories with a 30% increase in cost of goods since May 2002.?
 
ADDF said it expected 2004 passenger traffic at its two airports, Abu Dhabi International and Al Ain International, to show a 23.8% increase from 2003, when air travel was hit by SARS and the Iraq war. Traffic in the first 8 months was up by 18.9% year-on-year, the company added.
 
Traffic is expected to increase further due to the rapid growth of new UAE national carrier Etihad, which will take delivery of 24 new wide-bodied aircraft between 2006 and 2007. ADDF admitted that passenger growth had already created ?operational headaches?, with shops becoming crowded at peak times and said it was testing a mobile shop to cater for the extra footfall.
 
As reported by travelretailworld.com on August 4, the company has already asked the Department of Civil Aviation for twice the amount of duty-free space it originally requested in Abu Dhabi International airport's new terminal, due to open in the final quarter of 2007.
 
The duty-free operator also detailed some of its plans for the next few years, including several new outlets at both Abu Dhabi International and Al Ain. Highlights at Abu Dhabi International include a pharmacy and mobile shops during September, the renovation of a landside outlet in the last quarter of 2004 and a new arrivals shop in the first quarter of 2005, while Al Ain will welcome a new duty-free outlet in the second quarter of 2005.