Editor’s choice II
Dubai Duty Free soars to new heights
“This is a great sales achievement and adds to the impressive streak of records set earlier this year. I am particularly pleased that, based on our internal daily tracking, sales have outpaced passenger growth by about +9% – a remarkable achievement that highlights the outstanding efforts of the entire team.”
So said Dubai Duty Free Managing Director Ramesh Cidambi as the retailer reported a +15% leap in August sales year-on-year, reaching an all-time high for the month of AED646 million (US$177 million).
It builds on the impressive streak of monthly records set earlier this year in January, February, April, May and July.
The airport retailer also reported an increase in spend per passenger – by almost US$4 per departing passenger – and a penetration rate that was at least half a percentage point higher than last August.
Dubai Duty Free’s eight-month sales now stand at AED5.4 billion (US$1.48 billion), representing an increase of +6.9% on last year.
Sales remained strong across most major categories, with confectionery racing ahead of the average with a +68.9% surge year-on-year, propelled by the Dubai Chocolate phenomenon.
Gold sales climbed +28.55%, perfumes by +13.13%, and tobacco recorded an +11.05% increase. Further gains came in Millennium Millionaire ticket sales, which rose +33.7%, watches showed a +17.7% increase, while precious jewellery leapt by +24.2%, cosmetics was up +8.9%, liquor almost +3% and electronics +2.3%.
Overall, the top ten categories recorded a combined growth of +15% in sales. Excluding confectionery, these categories still rose +10.4%.
“We are enhancing penetration and spend levels while maintaining business focus” – Dubai Duty Free Managing Director Ramesh Cidambi
Over recent months, Dubai Duty Free has revamped its arrivals shopping offer across terminals 1, 2 and 3, which are supporting its buoyant sales growth in departures. Click here for our on-location story and Moodie Davitt STUDIO film.
A positive message
Comment: Speaking to The Moodie Davitt Report for an article that will appear in our October Cannes edition, Ramesh Cidambi said: “We are enhancing penetration and spend levels while maintaining business focus, despite a highly competitive and uncertain environment.”
That sums up the relentless approach from the airport retailer, with a finely tuned communications drive internally complemented by an investment push in stores and consumer marketing.
Cidambi also has some key messages for brands, notably on the luxury side, where the business has come back strongly after weakness in 2024 and as many leading brands continue to struggle.
“Keep looking at the assortment. Keep looking at the merchandising. Keep motivating the employees. Managing your staff, the stores, the day to day operations are all important.
“What we keep saying to the fashion brands is that you should not hide behind the overall weakness of the category. Even if all the major fashion houses are struggling or you have a sales decline compared to previous periods, that is not an excuse to not manage a particular account or a particular business better.”
With fashion boutique sales in Terminal 3 Concourse A and Concourse B up +10.9% last month compared to August 2024, and the number of daily transactions plus average transaction values increasing, that message is resonating, it appears. As reported, Louis Vuitton underlined this renewed momentum with the opening of a second store at Dubai International Airport on 4 September. The new boutique in Terminal 3 elevates the airport’s luxury offer with ready-to-wear collections, leathergoods, shoes and accessories – a landmark coup for Dubai Duty Free. Today there is reason for positivity in a category that was of concern a year ago, even if it remains tough, not least with Chinese spend lagging.
Watch out for the full interview with Ramesh Cidambi in our Cannes edition.
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The Moodie Davitt eZine
Issue 346 | 17 September 2025
The Moodie Davitt eZine is published 6 times per year by The Moodie Davitt Report (MA Travel Retail). © All material is copyright and cannot be reproduced without the permission of the Publisher. To find out more visit www.moodiedavittreport.com and to subscribe, please email kristyn@moodiedavittreport.com