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Colm McLoughlin, Dubai Duty Free
Colm McLoughlin and Saba Tahir accept the Travel Retail Award for Best Airport for Retail Environment as voted for by millennials in May.
are relatively new. These include an increasing number of Asian passengers; in particular Chinese travellers who are keen shoppers. In our case, Chinese travellers
account for around 2.7% of traffic at Dubai International Airport, but for around 17% of spend at Dubai Duty Free. In order to provide special offers and promotions to inbound Chinese travellers, we have joined forces with C-Trip, China’s largest travel agent, and Union Pay. By teaming up with C-Trip, we are able to interact directly with
travellers before they fly and help them make informed purchasing decisions at Dubai Duty Free. As a result of the promotions
and 5% discount offer to C-Trip customers (minimum spend applies), the initiative has recorded 47,800 sales transactions with C-Trip’s customers in 2018 (YTD August) valued at US$46.4m. We also signed an MOU with
UnionPay International, which to- date has issued a total of 6bn cards worldwide. Dubai Duty Free was the first retailer in Dubai to accept the
“I do not think that the industry invests enough in marketing...We invest 2.5% of our bottom line in marketing and I think that spend is more than justified in our sales of US$2bn.”
domestic Union Pay cards way back in February of 2012, and Union Pay is now the third biggest card payment method behind Visa and Master Card. Between January and May 2018,
over 72,100 transactions worth US$21.18m were completed using Union Pay cards, which is a fantastic achievement.
What are DDF’s biggest priorities for the final quarter of 2018 and next year? The main priority is to complete the renovation of Concourse C and other ongoing projects, and to stay on track for a record year of sales – US$2bn. That would be a very fitting end to a
SUBSCRIBER ONLY CONTENT Tobacco: Still a standout category for Dubai Duty Free
The tobacco category continues to battle against various regulatory bodies and has suffered a decline in sales in numerous regions. However, the category is thriving with Dubai Duty Free, posting a +33% rise for the first half of this year, as customers take advantage of excise and VAT free products. “The tobacco category posted an
increase of 33% in sales value from Jan – July 2018 vs 2017,” Colm McLoughlin tells TRBusiness. “Departures sales increased by 36%
that boarding pass data collected this year (from Jan to July 2018) provides evidence that the Middle East grew its share of tobacco sales (global DF&TR) from 26% in 2017 to 29% in 2018, while Europe’s share dropped from 30% to 28% in 2018. “We anticipate that the growth of
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and arrivals, 23% over the same period last year. However, the arrivals figure is inflated due to the inclusion of excise tax (introduced in October 2017) and when taken out, there is a decrease in value of 45% for arrivals. “On the other hand, departures has
seen sales increase due to regional customers travelling and taking advantage of excise and VAT free sales.” McLoughlin also tells TRBusiness
OCTOBER 2018
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tobacco in Dubai Duty Free will continue as our strategy of having the best pricing and best selection in the region continues,” adds McLoughlin.
Contact:
janice@trbusiness.com Cigars & Tobacco in Concourse D.
“Also, we have had some exciting developments in the tobacco category in the past year including the launch of one of the most striking initiatives yet in travel retail; the I Camel Dubai Duty Free limited edition pack of cigarettes and accompanying campaign. “The result of a two-year collaboration
with JTI (Japan Tobacco International), the limited-edition pack and the campaign resulted in a total of 11,708 outers sold out within three months valued at US$312,254.” Staff training in this category is also
very important to Dubai Duty Free specifically for niche sub-categories such as Cigars. “Knowledge in selling tobacco is quite complex and customers have high expectations and expect the correct answers,” adds McLoughlin. DDF also believes that if the frontline staff are well trained and knowledgeable it gives its customers ‘the confidence to purchase at Dubai Duty Free’.
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great year, in which we celebrate our 35th Anniversary. «
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