Abu Dhabi Duty Free sales surpass $100m in 2007

Gavin Lipsith

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Sales grew by 36.29% to $106.2m, driven by the rapid growth of Etihad Airways’ route network

Abu Dhabi Duty Free has reported sales of $106.2m in 2007, up by 36.29% on 2006 and passing the $100m milestone for the first time. Average spend per transaction grew 23.54% to $58.5 as new routes from UAE flag carrier Etihad Airways boosted passenger traffic.

The retailer, which claims to have the highest average transaction spend in the region, posted “robust” growth in the beauty, liquor, tobacco, confectionery and gold categories, and particularly in electronics where sales grew by 52.22% year on year. These categories together accounted for 58% of total revenue in 2007.

Abu Dhabi Duty Free managing director and Abu Dhabi Airports Company acting commercial director Dan Cappell said he expected aggressive growth to continue in 2008 as Etihad opens more key routes and the retailer prepares to add 2,500sq m (26,900sq ft) of retail space when terminal three opens at Abu Dhabi International airport later this year,

Cappell said: “Last year’s growth can be attributed to a number of factors but undoubtedly a key contributor has been the increased frequencies and number of routes to and from Abu Dhabi due to the ever-expanding network of Etihad Airways. We are confident that from early in 2008 we will see yet more aggressive growth, particularly as Etihad adds another key destination to their network – Beijing – and the official opening of T3 later in the year will add retail space and enhanced customer experience.”