Abu Dhabi Duty Free posts strong second-half recovery

Gavin Lipsith

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Despite the loss of Gulf Air passengers in the first half of 2006, the retailer achieved strong sales growth in the last quarter to post sales of $90.3m for the year.

Abu Dhabi Duty Free (ADDF) has overcome the loss of Gulf Air traffic and announced 2006 sales of $90.3m. Following the Abu Dhabi government’s decision to withdraw from Gulf Air ownership, ADDF lost 3m passengers at Abu Dhabi and Al Ain International airports, leading to a sales decrease of 8% in the first six months of the year. Sales improved in the second half of the year with an average increase of 17% in the last three months and a rise of 30% in December compared with the same month in 2005.

In-store promotions were introduced in the retailer’s liquor and tobacco department in August and September, which led to an increase of 33.7% in liquor sales and 7.6% in tobacco sales. Christmas promotions across the retail offer helped the retailer improve sales in December, with fragrance and cosmetics sales was up by 44% on the same month in 2005, liquor and tobacco up 20% and electronics up by 31%.

Abu Dhabi Duty Free managing director Mohamed Mounib said: “We are very pleased with the results of 2006. It was a challenging year and business was down by 8% by the end of June. As of July, sales started to soar due to Etihad Airways launching new destinations and to the new airlines that started operation at Abu Dhabi and Al Ain International Airports. We also paid attention to the merchandising mix, and major consideration was given to display and merchandising.”