Gebr. Heinemann (Heinemann) revealed turnover of €3.6 billion*/$3.9 billion in FY23 – a 25% increase on FY22, € 2.9bn.

 With inroads made in Oceania, Israel and India and returns to Changi and Dusseldorf in 2023, Gebr. Heinemann continues to diversify its business. Progress in 2024 has been substantial and the Hamburg-headquartered travel retailer continues to drive extensive regional growth. 

Airports (74%) took the lion’s share of turnover, with the rest split between border stores and other channels (both 8%), cruise ships & ferries (7%) and airlines (3%). 

Retail’s share (64%) of the group’s total sales registered €2.30bn/$2.49bn while the distribution business contributed a further €1.18bn, representing 24% and 27% year-on-year growth, respectively. 

Speaking in April, Raoul Spanger, Co-CEO of Heinemann said: “Q1 24 was a very good start in a difficult environment of high inflation rates and travel disruption. Turnover will reach a new all-time high in 2024 and exceed the four billion [€] mark for the first time. 

“It comes as no surprise 60% of our turnover was in Europe, but with 31% in the Middle East and Africa marking an 80% rise over last year, this shows really strong growth.” 

Mergers & accquisitions 

In January 2024 it acquired JR/Duty Free Israel, enacting a complete buyout of James Richardson Group’s shares in the joint venture partnership, affording Heinemann unfettered access to the duty free concession at Tel Aviv Ben Gurion International Airport.

Tel Aviv accounted for about a quarter of Heinemann’s retail turnover in the MEA region in 2023. 

Bernard Schlafstein, Director Sales – Middle East and Africa.

While the region is still challenged by the Israel-Hamas conflict, Bernard Schlafstein, Director Sales – Middle East and Africa, is confident that Heinemann’s diverse porfolio will see it through: “In the face of economical and geopolitical challenges, our diversified positioning is indeed very important and enables us to balance some of these out,” he noted, adding: “We do see that especially locals travel regularly again, and operations are carried on at a normal level. But tourists and some airlines are still missing.” 

Another monolithic step was taken elsewhere in the Middle East in December 2023, when a JV consisting of Heinemann, Jordanian Duty Free Shops and Astra Group won the duty free contract for Jeddah’s King Abdulaziz International Airport (KAIA) in Saudi Arabia. 

 The airport is set for a three-phase expansion extending through 2035. This will see its capacity rise from 30 million annual passengers to 80 million. 

Members of the Heinemann Executive Board at its annual press briefing.

Heinemann is currently operating approximately 40% of the retail space available to it, with plans to realise the location’s full potential by May 2025. 

“Constructions are on the way, and we are planning the official opening for the second quarter of 2025,” said Schlafstein. “The next step in expanding the current sales area is planned for November of this year.”

Turkey breaks €1bn 

These moves fall under the banner of a wider push by the business to diversify its earnings and alleviate the risk of external factors like international conflict, as well as sluggish conversion in regions such as APAC.

Spanger commented: “Learning from the pandemic, further diversification was always on our agenda, but it became even more so since the pandemic. One of our strategies is to decrease single risk and diversify via the channels.” 

Retail took a 64% slice of sales in 2023 for Gebr. Heinemann. Pictured is the retailer’s Malaysian units.

Elsewhere, the business in Turkey continues to be an important driver with an annual retail turnover of more than €1bn. 

“We were quite worried when the Chinese left but last year 40% of the turnover from our fashion business came from Russia,” said Schlafstein in April.

He told TRBusiness in June that Heinemann anticipates another €1bn at IGA Istanbul Airport, as it has experienced double-digit growth through H1 24. 

Heinemann has also found success through the cruise channel with Heinemann Americas based in Miami. 

FAWJ took a 7% slice of total consolidated group turnover in 2023.

“Following Covid we decided to focus completely on cruises out of Miami, so cruise retail and distribution out of Miami is clearly our focus,” noted Raoul Spanger, Co-CEO in April.

Although cruise accounted for €239m of 2023 turnover, the retailer still views it as an important component of its portfolio.

So much so that Heinemann essentially pivoted its entire American operations to cruise following the onset of the Covid pandemic. 

“In the Americas we decided during the crisis to focus completely on cruising out of Miami where we have our branch office and actually, we are now working in retail and in distribution within the cruise channel,” said Spanger.

“Shortly, we will also open a total of seven shops onboard the AROYA, the first ship of the newly found Cruise Saudi,” said Schlafstein. 

‘Firsts’ in AUS/NZ 

December 2023 saw Heinemann Oceania open 2,270sq m of department stores at Sydney Airport’s T2 and T3, a first in a domestic airport terminal in Australia. 

Following in March 2024, Heinemann Asia Pacific announced its entry into New Zealand for the first time with three new multi-brand retail concepts at Auckland Airport.

Marvin von Plato has since stepped down as CEO for Heinemann’s APAC operations, replaced by Johannes Sammann.

Over in India, Heinemann has snared a duty free contract for the under-construction Noida International Airport.

Speaking in May, Marvin von Plato, former CEO, Heinemann Asia Pacific, said: “The Indian growth story, particularly when it comes to travel and aviation, is an extremely exciting onwards and upwards journey [..].” 

As mentioned, its European operations maintained traction, comprising a 59% share of group turnover at €2bn.

In 2024, Heinemann has primarily been concerned with existing operations at Schiphol and Frankfurt through its Schiphol Airport Retail and Frankfurt Airport Retail (FAR) JVs.

Both airports have been the subject of ongoing investment to bulk up the commercial offer.

FAR enhanced the luxury offer at the airport with two 100sq m Bulgari boutiques in April and May, as Germany’s biggest airport finalised evaluations of tender offers for its upcoming T3 project. 

This feature first appeared in the TRBusiness Top 10 Operators Report 2024.

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