December Push Lands Dubai Duty Free $2.15 Billion—Flat Versus 2023

Dubai Duty Free, the core retailer at Dubai International—the second busiest airport in the world after Atlanta—finished 2024 with sales of $2.15 billion (UAE dirhams 7.901 billion) after a concerted effort in December to break last year’s record of UAE dirhams 7.885 billion.

The sales were only just ahead of 2023, and in dollar terms were lower due to an exchange rate effect. As the first major duty-free retailer to report its 2024 figures, the results may be an early indicator of tough conditions in the airport channel, although Dubai Duty Free is unusual among larger travel retailers in that it only operates in Dubai despite its large revenue.

Were it not for a strong December—which alone generated record sales of $225.2 million, up 2% on the same month in 2023—the retailer may not have beaten last year’s numbers. Fueling the end-of-year surge were Dubai Duty Free’s 41st anniversary celebrations led by a 25% discount on December 20 which brought in $16.4 million over 24 hours. December 2023 sales were $221 million.

Dubai International Airport is yet to release its 2024 statistics but in mid-November, it forecast full-year traffic of 91.9 million, an increase of 5.6% versus 2023. Dubai Duty Free’s 0.2% revenue increase was therefore well off its potential growth signaling weakened consumer demand.

Nevertheless, the retailer was content. In a statement, Dubai Duty Free’s managing director, Ramesh Cidambi, said: “We had a terrific November and December, and the last week of the year was particularly good with the staff really pushing hard to get beyond 2023’s record year. I am very happy with the way the year has turned out.”

Dubai Duty Free’s online sales surge by 20%

The retailer—the largest duty-free operator in the Middle East—executed several renovations and refurbishments during the year and recorded over 20.7 million transactions, selling over 55.14 million units of merchandise to an estimated 13.7 million shoppers in its arrivals and departures stores.

While departures sales—which represent 90% of the total—grew by 0.84% last year to reach $1.95 billion, arrivals saw a sharp decline of more than 12% to $147 million.

The biggest categories in 2024 were perfumes ($411 million) accounting for 19% of total sales, liquor ($289 million) with a 13% share, followed by cigarettes and tobacco ($221 million), gold ($213 million) and electronics ($149 million). Among the top five, liquor and electronics lost share due to sales declining by 6.6% and 13% respectively year-over-year. Online sales grew well to reach $54 million, a strong increase of 20% and they now account for 2.5% of revenue.

In line with a rebuild from Covid times, staff recruitment continued in 2024, now topping 6,000 with 54 different nationalities represented. Dubai Duty Free also strengthened its senior management team with eight senior managers appointed to key roles, including seven UAE nationals. “The new senior managers have integrated very well and are a key part of our five-year business plan (2025-2029),” Cidambi said. The retailer lost its long-time leader Colm McLoughlin when he died at the end of October 2024.

Renovations are set to continue this year with the completion of an upgrade of the arrival shops. This will be followed by major refurbishments of Dubai Duty Free’s luxury watches and electronics shops in Concourse B that will run until 2026. Meanwhile, in Concourse A a major revamp of its beauty and gift stores will also take place and three new fashion branded boutiques are set to open by late 2026.