Abu Dhabi airport retail sales taking off

Published January 31st, 2013 - 09:52 GMT
Abu Dhabi Airports Company
Abu Dhabi Airports Company

Abu Dhabi Airports Company (ADAC), the operator of Abu Dhabi’s five airports, announced on Wednesday that Abu Dhabi Duty Free retail revenue reached Dh809.5 million in 2012, a 24 per cent increase over 2011.

This is predominantly due to the increase in the average spending per passenger and the increase in the number of passengers passing through the airport. In 2012, Abu Dhabi International Airport’s passenger numbers grew by 18.9 per cent, bringing 14.7 million passengers through the airport.

“We are proud that in 2009 our numbers were Dh504 million and in 2012 we reached Dh810 million, that’s over 60 per cent increase in the past three years,” said Mohammad Al Bulooki, Chief Commercial Officer (CCO) at ADAC, on the sidelines of the Trinity Forum 2013, an annual conference on the travel retail industry.

Al Bulooki told reporters that the retail business is expected to grow over Dh1.5 billion by 2017. “Our retailers at the airport have to be fully ready for this kind of growth,” he said, adding that the expectations for next year is grow the business by at least 13 per cent.

“On average at most airports, the non-aeronautical revenues make up around 20 to 25 per cent. At Abu Dhabi International Airport more than 50 per cent of our revenue comes from duty free and the commercial side, such as the retail, the hotel at the airport, food and beverage,” he said. “Of course, this has nothing to do with airlines’ charges and fees,” he added.

Today, Abu Dhabi Duty Free takes up a space of 6,500 square metres. When the new Midfield Terminal Complex comes online, commercial space will make up a total of 30,000 square metres, including the lounges, Al Bulooki said.

New projects set to be completed in 2013 are a new Armani boutique and doubling the size of the Burberry boutique, which will include the addition of ready to wear in Terminal Three. These new projects will further increase the breadth of the airport’s retail offer for its passengers. Today, Abu Dhabi Duty Free has 21 luxury boutiques and more than 50,000 products.

Contract renewal

ADAC also announced the renewal of its contract with Duty Free Shoppers (DFS), an international travel retailer, to manage and operate Abu Dhabi Duty Free until the end of 2017.

The agreement was signed today on Wednesday by Ali Majid Al Mansouri, Chairman of ADAC and Phillipe Schaus, Chairman and CEO of DFS. “Extending this partnership for another five years will allow both parties to explore further new opportunities as the Capital’s airport continue to record a substantial increase in passenger traffic annually,” Al Mansouri said.

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