The entrance to the new departures store at KEF.

Germany’s Gebr. Heinemann – together with state-owned Isavia, the operator of Iceland’s Keflavík Airport (KEF) – today unveiled the new-look Ísland Duty Free concept at the gateway. It draws on the country’s distinctive landscape, while local brands have hit a new high with a 30% share of the portfolio. For comparison, the average in Germany is below 10%.

Iceland is effectively a new market for Heinemann within its Nordics business unit, although, as Max Heinemann, Co-CEO of the global travel retailer, remarked in a press conference this morning: “In 1953, Loftleiðir (a precursor of Icelandair-Ed) became the first airline client for our inflight distribution business.”

More than 70 years later – and after a competitive tender process (signalled pre-pandemic) – the Hamburg-based business has established itself at KEF with the opening of Ísland Duty Free – Ísland being the Icelandic word for Iceland. The offer spans approximately 4,000sq m, according to Jens Wolf, Director Sales Nordics at the travel retailer.

Berglind Snæland, Isavia’s Commercial Director, said: “We are pleased to see the ideas from the tender process brought to life. The new shops offer travellers a much-improved experience with better orientation, a stronger selection, and an authentic sense of Iceland.”

Heinemann operates three retail spaces at KEF: a departures store of approximately 1,600sq m, an even larger arrival shop of about 2,000sq m – reflecting the traditional high spending on liquor by Icelandic nationals when returning home, and a gate unit. All three offer the four core duty-free categories of beauty, liquor, tobacco, and confectionery, as well as fashion, accessories, gifting, and convenience products.

In total, depending on the season and on day-to-day peaks, between 120 and 160 staff work across the shop floor, logistics, and back-office functions.

Sea of blue and an aurora/geothermal steam effect: how local brands are being showcased  in departures.

Ísland local heroes to the fore

Of the total retail space, more than 370sq m is dedicated to Icelandic products and their narratives. Four personalised Icelandic brand environments give local producers spaces to share their stories with international travellers, strengthening the visibility and communication of Icelandic craftsmanship.

Responding to a question during the press conference from TRBusiness on the high local brands share and whether it was intentional or an organic development, Heinemann’s Chief Commercial Officer Inken Callsen replied: “Our ambition was to have at least 20% local brands, and we achieved 30%. This share is well above what we have elsewhere. Germany, for example, is below 10%, although we have a stronger regional approach in places like Hungary or Vienna. The second-highest share for regional and local products is in Italy with 24%.”

She added: “It’s not just about the percentage; it is also about showing the Icelandic identity and bringing the right feeling into the store to make it more relevant to the traveller. This way we believe we can convert more tourists into customers. It is a new benchmark in the industry. Within beauty, three Icelandic brands are in the top ten bestsellers, which is amazing.”

Icelandic salt – typically geothermal sea salt – is in demand on the island, and a new segment for Heinemann. Wolf explained that the localisation agenda doesn’t extend to just one or two categories. “It’s skincare, confectionery, spirits and so on,” he said. “The suppliers here are very much involved and even with the smaller ones, the owners are coming here (to the airport) to do training and tastings. It’s a very close collaboration, and we’re looking forward to strengthening that even more.”

Max Heinemann addresses journalists at the departures store flanked by Isavia’s CEO, Sveinbjörn Indriðason, and other VIPs.

At the same time, Ísland Duty Free has brought major international brands to the country and in some cases, particularly in niche beauty, certain introductions are ‘firsts’ for the Icelandic market. Korean beauty brands and Bath & Body Works are two examples. New sunglasses brands will also be integrated into the existing eyewear space from November.

Design – another lure for tourists

In departures, an open shopfront offers easy access and orientation through the categories. At the heart of the store is a regional area developed together with Icelandic firm Basalt Architects in a setting that includes a milky blue floor reminiscent of the famous Blue Lagoon, a ceiling installation evoking geothermal steam, and 3D-printed sculptural elements.

The arrivals shop, by contrast, targets mainly returning Icelanders and is designed for speed, clarity, and convenience, with clear communication on allowances and a broad assortment led by liquor. Across both shops, self-checkout, digital shelf labels, click-and-collect services, webshop integration, a loyalty programme, and interactive product discovery tools are offered as part of the experience.

Ísland Duty Free has a large wine offer in the arrivals store.

Sustainability was also integrated into the retail concept from the beginning. The regional fixtures are produced using 3D robotics from Spain’s Nagami and made from recycled plastic. The stores use recycled materials such as Omexco Minerals wall coverings made from recycled paper and fine mica.

Turning the page at Keflavík Airport

Max Heinemann, Co-CEO of Gebr. Heinemann, said: “With Ísland Duty Free, we are opening a new chapter for travel retail at Keflavík Airport. We are grateful for Isavia’s trust and proud to bring our international expertise to Iceland.”

Given KEF’s role as a connecting hub for Icelandair, the retail experience is one element that can persuade travellers to transit through the airport. Sveinbjörn Indriðason, CEO of Isavia, said: “At Keflavík we connect the world through Iceland, and the experience we offer here matters. A strong duty-free offering plays an important role in the airport’s competitiveness. With Heinemann’s industry knowledge and expertise, we look forward to further enhancing the customer journey while creating value for Icelandic brands and the country as a whole.”

To mark the opening, Ísland Duty Free is presenting exclusive travel retail editions and promotions, including a limited “Hæ from Iceland” Toblerone and a dedicated Blue Lagoon Skin Science special offer for the launch, available only at the airport.

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