Dubai Shopping Festival A Cornerstone Of Retail Sector Growth - Colm Mcloughlin Of Dubai Duty Free

The Dubai Duty Free has been one of the cornerstones of Dubai’s economic miracle and has played a vital part in promoting the city throughout the world. The DDF has become synonymous not only with great shopping, but also with the best international sporting events in the region, as well as its increasingly outstanding hospitality. It has also been a key supporter of the Dubai Shopping Festival ever since the DSF’s first edition, and today as a Strategic Partner of Dubai Events and Promotions Establishment, an agency of the Department of Economic Development and the organizers of DSF, DDF continues to play its part in promoting the festival to visitors from around the world.

Colm McLoughlin, Executive Vice Chairman of Dubai Duty Free, speaks to DEPE’s Media Centre about the company’s support to the DSF, its ongoing expansions and about its future plans.

1. You have been supporting the DSF right from its beginning to the present day. What is your strategic vision for this partnership?

A. From the beginning of Dubai Duty Free (1983) one of our key objectives has been to promote Dubai on the regional and global stages and to help establish the emirate as a leading business, leisure, shopping and sporting destination. As a result, we have initiated major events such as the Dubai Duty Free Tennis Championships, which attracts the top tennis players in the world and ensures extensive media coverage around the world.

When the organisers of the Dubai Shopping Festival approached us, we could see straight away that this was an initiative that would position Dubai as an important destination for leisure travelers and we had no hesitation in supporting that.

2. Since Dubai is considered the best shopping destination in the UAE, do you find an increase in your sales during DSF?

A. The Dubai Shopping Festival attracts a great many visitors to Dubai and, as a result, many of these visitors travel through Dubai International Airport and shop at Dubai Duty Free. Our job is to ensure that we sell to around 50 per cent of all travelers, so with the increase in passengers, our sales should increase and this is the case.

3. In your opinion, what influence does the festival and its activities have on tourism and retail in general?

A. The fact that the retail sector embraces the Dubai Shopping Festival is a great endorsement for the ability of the DSF organisers to generate enthusiasm amongst this sector. There is no doubt that tourism is driven a great deal by the retail offers in Dubai, in addition to the fantastic hospitality, leisure and cultural events that go hand in hand with the shopping experience. The fact that there is such a comprehensive calendar of events for visitors during DSF makes the festival a key attraction for families in particular, which is an important target audience for Dubai.

4. Dubai Duty Free has received more than 160 awards that are testimony to its huge success throughout its existence. Are there more ambitions, and in which direction?

A. We are always thrilled when we are recognized by the media or by the industry for our success. For the past five consecutive years, Dubai Duty Free was named “Best Duty Free” in the Global Traveler magazine survey, which is a US-based magazine aimed at business travelers. This is a great honour for us and reflects the hard work and commitment by all of our staff. Of course, we are very lucky to have His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman of Dubai Duty Free, at the helm of our operations. He is a continuous source of encouragement for the operation and for all of our efforts.

5. Where have the companies’ sales reached so far?

A. In 2012 our sales reached a record AED 5.9 billion or US$1.6 billion, which is a 10 per cent increase over 2011. The signs of a remarkable year were evident from the early stages and concluded in December when a new monthly sales record of AED 619 million (US$169 million) was achieved. On the operation’s 29th Anniversary Day on December 20th, a special promotional offer of a 25 per cent discount fuelled sales of AED 76.91 million (US$21 million) in the 24-hour period. The operation has also recorded a staggering 23.5 million sales transactions in 2012, which average out at 64,200 sales transactions per day.

6. Dubai Duty Free has succeeded in creating effective partnerships with entities such as National Bonds. What are your future alliances?

We are pleased with the agreement made with National Bonds. It is good for our team of employees and we would be open to looking at other schemes that would have a positive impact on their time here in Dubai.

7. Does Dubai Duty Free have strong competition from local companies?

A. Dubai Duty Free operates in a competitive retail environment with the downtown offer in Dubai providing a fantastic choice and the shopping malls are some of the best in the world, too, if not the best. So yes, we have to compete, but that is a good thing. We know that we have to offer the best products at the best prices and, in addition, provide an excellent level of customer service - which I think we do. I believe that our staff is amongst the best trained in the duty free industry. I also think that our retail offers are very attractive, and with the opening of Concourse A earlier this month, the offers will expand further with more brands coming into the mix. As a point of interest, Dubai Duty Free sources 70 per cent of its products from local distributors, as we are committed to supporting the local economy and this has proved to be a successful model for our business.

8. What are the strategies that Dubai Duty Free implements to remain the beautiful face of Dubai?

A. Well, we intend to continue to enhance our retail offering at Dubai International Airport and we are very excited with the opening of Concourse A, which is just spectacular. We will also continue to promote Dubai through our major sporting events both at home and overseas, and to support the local community through cultural and sporting programmes. Our own leisure division, which includes the popular Irish Village and Century Village, was recently enhanced with the opening of our 5-star hotel, the Jumeirah Creekside, which is managed by the Jumeirah group and is a great addition to the hospitality scene in Dubai. 

Emirate:  Dubai

Date: Jan 13, 2013

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