MIDDLE EAST & AFRICA: DUBAI DUTY FREE
DDF analyses staff/shopper capacity as it predicts another challenging year
As Dubai Duty Free insists that forecasts are difficult to make right now, the world’s biggest single-location travel retailer does believe that in 2021 sales might only reach a third to a half of the US$2 billion figure it registered in 2019. Ramesh Cidambi, Chief Operating Officer says that staff versus customer capacity has to be monitored carefully in the coming months to maximise revenue. Andrew Pentol and Charlotte Turner report.
D
ubai Duty Free (DDF) confirmed to TRBusiness that 2021 sales are predicted
to reach one third or half of last year’s total, which was in excess of US$2 billion. The forecast was made by Ramesh
Cidambi, Chief Operating Officer, Dubai Duty Free during the first Middle East and Africa Duty Free Association (MEADFA) virtual event, which took place last month. Cidambi, who also spoke in
the keynote session as part of the TRMarketplace webinar and
workshop programme on 28 September, said he expected sales to return to pre-crisis levels in 2023 or 2024. In terms of passenger number
predictions, Cidambi said: “Next year, the range of forecasts in terms of passenger volume is quite broad. “Passenger numbers could be as
low as one third of last year’s total of 88 million, meaning the number could be as low as 30 million or 32 million. It could also be as high as half of last year’s total and end up at 45 million or 47 million.”
He continued: “We think we will finish somewhere between the low forecast and best forecast with 30 million to 45 million passengers in 2021. I also think our business will be somewhere in the middle [of last year’s total].”
Spend per pax on the rise While the number of passengers has taken a nosedive, the spend per passenger has risen; +70% in September year-on-year. Penetration was also up 20%. However, DDF’s
“Passenger numbers could be as low as one third of last year’s total of 88 million, meaning the number could be as low as 30 million or 32 million. It could also be as high as half of last year’s total and end up at 45 million or 47 million.”
Ramesh Cidambi, Chief Operating Officer, Dubai Duty Free
Dubai Duty Free observed a 90% increase in online sales during lockdown. NOVEMBER 2020 TRBUSINESS 27
Above: DDF made store modifications to adhere to strict Covid-19 guidelines in June.
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