State-owned Duty Free Philippines is targeting total sales of $235m in 2015 (+2.5%) after hitting $229m in 2014, with Manila Airport accounting for nearly 45% and the downtown Fiesta Mall just under 50% as DFP’s largest single outlet.
While the expected sales increase is modest, it is regarded as a good performance considering Manila Airport Authority reduced the number of concessions in T1 from around 30 to less than 20 due to congestion and major airlines have also transferred operations to T3.
“T1 work is not finished. It’s work in progress,” said Duty Free Philippines Merchandising Division Manager Jennifer Start, talking exclusively to TRBusiness recently.
“There has been a remarkable change. We have renovated our departure stores, but we heard there is more work to be done by the airport authority in T1. It’s upgrading work. They have shown us plans to expand the facility.”
Duty Free Philippines’ biggest-selling product category remains confectionery, accounting for 37% of total sales. It is also the biggest selling category at Manila Airport, accounting for 44%. Above: Manila NAIA Terminal 3. ©.
Further work is also in the pipeline for T3 (which accounts for 20% of Manila Airport sales) as DFP gets to work on renovating and increasing its shops and boutiques in the departure hall.
Meanwhile, arrival shops sales account for more than half of DFP’s total sales revenue at Manila Airport, with Filipino passengers representing the majority of customers and the number one purchase being confectionery/chocolate.
DFP’s perfume and cosmetics sales accounted for 11% of it total merchandise sales last year. Above: Manila NAIA Terminal 3. ©.
By contrast, foreign passengers purchase a larger share of goods in DFP’s departure shops, with South Koreans and Mainland Chinese the highest spenders.
Confectionery is the biggest selling category at Manila Airport, accounting for 44%, followed by liquor (26%), perfume and cosmetics (12%) and tobacco (7%). Fashion, watches and souvenirs take the remaining 11%.
The liquor section within the Duty Free Philippines Fiesta Mall. ©.
The retailer’s downtown duty free Fiesta Mall has also undergone a total renovation and upgrade over the last two years, according to Start, and has received favourable comments from customers: “We have had a major transformation in Fiesta Mall, especially for perfume and cosmetics last year. The fashion area also has been renovated, along with liquor, tobacco and confectionery,” she said.
“We have new Coach and Chloe boutiques, and a complete range of lingerie, bags and perfume and cosmetics in Victoria’s Secret. Another new outlet is our Bath & Bodyworks health and beauty products shop that opened here earlier in 2015.”
Wines and spirits is the second-largest product category in terms of sales across DFP’s outlets, accounting for 18% in total. ©.
Including sales from all ten of its provincial airports, Manila Airport and the Fiesta Mall, DFP’s biggest selling product category remains confectionery, accounting for 37% of total sales, followed by liquor (18%); Perfume and cosmetics (11%); fashion (9%); and tobacco (5%).
