Abu Dhabi Duty Free sales surge 19% in 2004

Dermot Davitt

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New arrivals and landside shopping will be among the big developments in 2005

Abu Dhabi Airport Catering & Duty Free today revealed its results for 2004 with total revenues of Dh446m ($122m), an increase of 19% over the previous year. Turnover at the company's duty-free and duty-paid shops also rose by 19%, 12% higher than budgeted figures. Duty-free sales were $92m, a strong rise on last year's $83m.

Abu Dhabi Duty Free managing director Mohamed Mounib said: "We are expecting an additional 1m passengers by 2007, thanks largely to the expansion of our national carrier, Etihad, which is currently flying to 16 destinations and will fly to 30 destinations by the end of 2005.

"Plans have just been announced for the construction of an additional terminal at Abu Dhabi airport which will work as a mid-term solution until the new airport is built in three years' time. The new terminal will be ready by August and will have a duty-free operation that will enable us to expand our business to meet the demand of our passengers. In the short term, we are strategically re-positioning our shops, relocating some of the outlets from the upper level to the ground level and expanding some of the ground floor shops outwards from the back, in order to consolidate our retail offer and maximize efficient use of space."

Average spend per head at Abu Dhabi Duty Free increased by 8% during 2004 to $36.82, which the company said indicated increased consumer confidence following the last few difficult years. The top five shop contributions to the total spend were Liquor & Tobacco (20.42%), Confectionery (20.27%), Beauty & Fragrance (13.30%), Vision 2000 electronics (12.43%) and Gold (9.50%).

Among the key projects for 2005 is the creation of a new 100sq m (1,080sq ft) arrivals shop, which will feature a strong liquor and tobacco element. In addition, the main landside store will be renovated and made more open. A $10 concept shop ? Bijoux Terner ? will be introduced, retailing everything for $10.

Other notable introductions will be an Internet café and mobile phone shop, both on the upper level of departures. Mounib said: "The decision to open a dedicated shop for mobile phones was taken as this is one of the fastest-growing categories in electronics, contributing almost 30% of the business in the Vision 2000 electronics shop. The shop is being designed by Portland UK and the tender will go out very soon for construction."

As reported last year in DFNI, a new car park convenience store will open catering to both arriving and departing passengers. Mounib said: "We have been aware for some time that there is a significant demand among our passengers, particularly on arrival, for essential convenience products, and therefore we have come up with this concept to fulfill that demand."

In addition, the food and beverage offer will be overhauled with the redevelopment of the Oasis café area into a food court with various name brands. The design concept for this area is currently being finalized and will be released shortly. Meanwhile, on the upper level opposite the heritage village, an Irish pub will open.

Finally, the company will open a new 350sq m (3,766sq ft) duty-free shop at Al Ain International airport this year.