Dubai Duty Free’s Ramesh Cidambi on experiential arrivals retail and strategic expansion

Dubai Duty Free’s positive performance trajectory has intensified through 2025, with record half-year sales of US$1.128 billion and August revenues reaching US$177 million, marking 15% year-on-year growth. Managing Director Ramesh Cidambi’s transformation of arrivals retail through experiential zones and strategic digital integration is reshaping passenger engagement patterns while driving the retailer toward estimated annual revenues of US$2.2 billion.

Year-to-date sales through August reached US$1.48 billion, representing 6.93% growth over 2024. August’s performance surpassed the operator’s previous peak of US$161 million reached in August 2018, with sales averaging US$5.70 million per day during the month.

Arrivals transformation delivers

Dubai Duty Free’s refurbished Terminal 3 Arrivals store spans 1,300 square meters with a wide entrance topped by a 57-meter LED screen. Les Caves de Champagne, developed through partnership with Moet Hennessy, anchors the front of the space.

“We are very happy with the passenger response to the newly refurbished Arrivals shop in Terminal 3 and we have received very positive feedback from our staff and customers,” says Cidambi. “The first thing you notice about the new shop is the wide and inviting entrance; the shop runs to around 1,300 square meters.”

Four experiential zones within the space demonstrate measurable commercial impact. From January to June 2025, the location generated US$9.3 million in sales, marking 7.83% growth over the same period in 2024. July delivered a dramatic 68.36% year-on-year surge with US$1.44 million in sales, driven by longer dwell times and increased spending.

Tasting areas have become powerful conversion engines. “The sampling of wine, whisky and other spirits are proving crucial to conversion,” notes Cidambi. “The tasting sections, which include Salon Prive, Wine O’Clock and the Mixology section, really encourage the passengers to sample and the conversion rate from a tasting to purchase is nearly 60%, which is very high.”

Category performance surge

Spirits performance within experiential zones reveals the power of curated retail environments. Whisky sales increased 91.78% with volume rising 74.50%, while tequila posted 130.27% sales growth alongside 123.26% volume increases. Wine sales rose 46.29% and Champagne climbed 55.06%, reflecting strong performance in upscale zones.

The Beer Garden delivered 29.13% sales growth and 28.13% volume increases, proving casual spaces drive meaningful engagement. Other categories also benefited from improved presentation and navigation. “Another thing that resonates with our customers is the improved representation of the non-alcohol category,” says Cidambi. “The product range includes beauty, confectionery, tobacco and consumer technology.”

Shifting passenger behavior

Traveler engagement patterns are transforming Dubai Duty Free’s strategic approach to arrivals versus departures retail. Historically dominant departure sales face competition from increasingly engaged arrivals customers seeking immediate indulgence and destination connection.

“We are seeing a significant shift in travelers’ behavior, particularly in our arrival shops, which now features four innovative experiential zones following its recent renovation,” observes Cidambi. “Arrivals are no longer a passive phase of the journey.”

Customers across demographics are using the new Terminal 3 arrivals experiential zones not just for shopping but for photography and social media content creation. The spaces are evolving beyond convenience into curated environments that showcase destination appeal and deliver seamless welcome experiences. “We see arrivals retail as a vital touchpoint for early engagement, brand building and incremental revenue,” says Cidambi. “It’s no longer a secondary channel but a strategic front-line opportunity.”

Digital integration strategy

Technology implementation focuses on enhancing rather than replacing human interaction. Dubai Duty Free introduced Scan, Pay & Go in October 2024, allowing customers to shop and pay entirely through mobile devices, though adoption reveals continued preference for human interaction. “We introduced the Scan, Pay & Go solution in October 2024,” says Cidambi. “However, in reality many customers still gravitate toward staffed counters.”

That said, mobile POS systems generated over US$356,000 in sales across more than 6,300 transactions in July alone. “Customers like the fact that a member of staff completes transactions on handheld devices, offering the speed of tech with a personal touch,” notes Cidambi.

Payment ecosystem expansion includes Alipay+, which comprised 36% of wallet-based transactions during the first half of 2025 while contributing 47% of sales value. Current options span UPI and Terrapay, with cryptocurrency integration planned for the near future.

Record-setting momentum

August 2025 performance reinforced broad-based strength across Dubai Duty Free’s product range. Confectionery led in sales growth at 68.90%, followed by gold at 28.55%, perfumes at 13.13%, and cigarettes and tobacco recording 11.05% increases. “It is a great sales achievement and August’s record adds to the impressive streak of records set earlier this year in January, February, April, May and July,” says Cidambi.

Fashion boutiques in Terminal 3’s Concourse A and Concourse B increased 10.86% compared to August 2024. Cartier posted the strongest performance among boutiques with 29.33% growth. Average daily boutique transactions rose to 254 from 237 in August 2024, while average transaction value increased to AED8,004 (US$2,180) from AED7,748 (US$2,109).

Confectionery’s standout performance from January to June reflected 62% growth, with Dubai chocolates contributing significantly. Boutiques delivered strong results with 11.38% increases across the network.

“Both the Eid holidays were good for us this year and this summer. Though it’s a bit complicated, the spend per passenger is better than last year,” notes Cidambi. “Terminal-wise, spending is stronger in Concourse B of Terminal 3 mainly because our fashion offers are strongest in Concourse B.”

Geographic performance patterns

Regional market analysis reveals varying growth trajectories across Dubai Duty Free’s passenger base. US-bound travelers generated the highest growth at 27.94%, followed by Middle East passengers at 19.78% and Indian sub-continent travelers surging 17%.

All major terminal areas posted exceptional growth compared to August 2024. Concourses A and B each rose 17%, Concourse C grew 16.45%, and Concourse D increased 7.91%. Terminal 2 Departures recorded 13.60% growth, while Al Maktoum International Airport experienced remarkable 56.91% increases.

Arrivals shops posted 11.72% growth despite increased Terminal 3 competition. Spend per passenger improvements reflected nearly US$4 increases per departing passenger and penetration rates at least half a percentage point higher than previous August periods.

Luxury expansion initiatives

The second-half strategy centers on strengthening Concourse A’s fashion offering through new boutique openings. Louis Vuitton and Cartier boutiques are scheduled to open in September, with a temporary Chanel shop launching in December.

“In Concourse A we are strengthening the fashion offer with the opening of Louis Vuitton and Cartier boutiques in September and a Chanel (temporary shop) in December. That should bring Concourse A up to the same level of Concourse B,” says Cidambi.

Concurrent renovation work will introduce a new “Gifts from Dubai” concept store by December, alongside refurbishment of Concourse A perfumes and cosmetics shops. These initiatives build on momentum already visible in luxury performance, where boutiques account for almost 10% of total sales.

Sustaining growth trajectory

Dubai Duty Free’s approach to maintaining record performance emphasizes continued renovation, refurbishment and strategic boutique openings alongside meaningful customer engagement and service excellence from well-trained staff.

“Our priority for the remainder of this year is to sustain the strong revenue growth achieved over the past seven months, with five of seven months setting new monthly records,” says Cidambi. “We will also continue to engage meaningfully with our customers and to offer a high level of customer service from a well-trained and motivated workforce.”

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