DDF remains positive despite Russian withdrawal

By Kapila Ireland in Airports, Financial News, Latest News, Middle East & Africa, Retail News November 23, 2015 Comments Off on DDF remains positive despite Russian withdrawal

Dubai Duty Free (DDF) estimates the withdrawal of Russian traffic will cost the retailer approximately $14m in sales by the end of the year. However DDF remains confident it will hit its $2bn sales target by the end of this year despite that withdrawal coupled with currency challenges, DDF executive vice-chairman Colm McLoughlin told DFNI in an exclusive interview in the November MEADFA Special Edition.

The Dubai Duty Free shopping complex at Concourse D

“This year we have had difficulties with, for example, the US dollar being very strong, which means buying in Europe is more expensive and buying in sterling is more expensive for people. We have been looking at that and trying to do some reductions to ensure things are as competitive as possible,” he said.

“We have seen a big drop-off in Russian traffic and estimate this year the reduction in sales from Russian passengers will cost us sales of approximately $14m,” he identified. However, McLoughlin added that sales from Chinese and African travellers remain strong. “We are expecting to end the year with a small increase over last year—we are currently up 1%, which in our case is about $25m, and hoping, as we predicted at the beginning of the year, to hit $2bn.”

See DFNI November 2015 for the full story — pick up your copy at MEADFA today! The edition is also available to read online (Subscribers only)