Co-CEOs Max Heinemann (left) and Raoul Spanger (right) with CCO Inken Callsen (middle) present the 2024 results.

Gebr. Heinemann hit €4.3 billion in 2024. Its retail arm, which accounted for 63% of turnover and generated €2.711 billion in a 24% surge from 2023, is a cornerstone of its success, fuelled by a bold response to the industry’s declining SPP. 

At a press conference to release the results [at the company’s Hamburg HQ Thursday 8 May, at which TRBusiness was in attendance], co-CEOs Max Heinemann and Raoul Spanger and CCO Inken Callsen spotlighted a three-year shop refurbishment programme to counter SPP erosion, focusing on enhanced merchandising, immersive experiences and category-specific highlights.

Max Heinemann’s vision to “turn travel time into valuable time” is materialising through stores designed as experiential hubs, not mere transactional spaces. “This needs a whole level of innovation on whether it’s experience or convenience,” he said.

Beauty, up +24%, thrived on niche fragrances  – accounting for 70% category share – and premium offerings, tapping demand for exclusivity among Generation Z travellers.

Fashion and accessories, accounting for 8% of turnover, soared +28%, with notable expansion in Istanbul to serve luxury-hungry Russian and Saudi shoppers.

The liquor, tobacco and confectionery segment, up +17%, faced headwinds from sluggish spirits growth, up +5%, but benefited from tequila’s +42% surge and exclusives like Rod Stewart’s Wolfie’s Whisky.

Financial highlights of the Gebr. Heinemann Annual Business & Sustainability Report 2024. Source: Gebr. Heinemann.

Confectionery grappled with cocoa price spikes, yet high-end chocolates such as To’ak drove footfall, proving consumers will splurge on unique products, according to Spanger.

Heinemann’s test-and-learn spaces at store entrances are a strategic coup, introducing niche brands to boost penetration.

Collaborations promoted on social media drew younger demographics, while the Heinemann & Me loyalty programme fuelled sales of limited editions such as [those by] Jägermeister.

More highlights of 2024 include the supplier summit in Hamburg, themed “Power of Collaboration”, which showcased data-driven innovation, as well as a WhatsApp campaign offering personalised Tony Chocolonely gifts to attendees, which spiked store visits.

The retailer’s intelligent pricing engine enables dynamic pricing tailored to traveller profiles, addressing the shift toward personalised, value-driven purchases, according to Max Heinemann. “I’m firm believer in the power of data. It will make a huge difference,” he said.

Financial key figures form the Gebr. Heinemann Annual Business & Sustainability Report 2024. Source: Gebr. Heinemann.

Assortment optimisation, now spearheaded by fifth-generation Clara Heinemann, is pivotal to the company’s success. The current “everything for everyone” model is being streamlined to target luxury seekers and value hunters, reducing SKU complexity while prioritising high-turnover, profitable products. This helps to tackle consumer confusion – a concern echoed by airports – and boost conversion, says Heinemann.

Local offerings such as Summerbird confectionery in Copenhagen and Berlin-themed magnets, embed regional identity, enhancing store appeal.

Gebr. Heinemann’s Annual Business and Sustainability Report 2024 was released on 8 May.

Spanger’s push for “open marketplaces” over boxed layouts, paired with mobile checkouts, aims to bring shops to travellers. “We are investing a lot of money into new shops to fight SPP because it’s not acceptable to say SPP is going down,” he said.

Callsen added, “We need to transform [travellers] into customers and make sure they enter our stores… it’s about the assortment we offer and the excitement.”

Regional expansion: diversification as a growth engine

Heinemann’s regional strategy, rooted in diversification, mitigates risks from geopolitical and economic turbulence, says the company.

Europe, excluding Turkey, contributed €2.39 billion (56% of turnover), up by +14%, while Istanbul’s luxury market thrived on Russian and Saudi spending.

The Middle East and Africa, including Turkey, surged +28% to €1.4 billion, driven by Jeddah’s rollout and a fortified Dubai hub.

Jeddah, despite a year-long setup, positions Heinemann to tap Saudi Arabia’s travel retail boom, though long-term models remain fluid amid insourcing debates.

The current “everything for everyone” model is being streamlined to target luxury seekers and value hunters, says Heinemann. Pictured here is a wellness and health concept at Düsseldorf Airport.

The Americas, at €103 million and accounting for 2% of turnover, posted +75% growth, fuelled by a heavily focused cruise strategy in Miami.

The cruise sector’s captive audience and data-sharing partnerships, treating travellers as “guests,” offer a blueprint for airports, as Max Heinemann noted.

Asia Pacific grew +30% but lagged expectations due to a 50% drop in Chinese spending, down from €120 to €60 per traveller.

China’s economic woes and domestic duty-free policies hit markets like Sydney and Kuala Lumpur for the retailer, prompting Heinemann to push for post-Covid contract renegotiations.

India’s entry via a Noida partnership, blending domestic and international retail, targets the country’s 80% domestic travel market, with plans to scale this model in line with with the forecasted surge in civil aircraft numbers over the coming years.

In India and beyond, the rise of small-body aircraft enabling point-to-point routes is said to open doors for travel retail at secondary airports, aligning with Heinemann’s regional push.

Industry trends: a new era of opportunity

Travel retail is navigating an era of robust travel growth but declining SPP, according to Max Heinemann, who said: “The new normal is a clear translation or headline for what’s happening in the world in terms of instability… be prepared for something you sometimes cannot prepare for.”

Consumers, especially younger generations, demand experiential, personalised shopping, favouring exclusivity over traditional duty-free staples, outlined the company.

In response, the retailer’s hyper-local offerings and test-and-learn spaces set a standard, inspiring competitors.

Premium offerings are tapping demand for exclusivity among Gen Z travellers. Pictured here is a niche products area in Vienna Airport. 

Data sharing is reshaping the industry, emphasised Heinemann, with the company advocating airline-airport-brand partnerships to boost penetration.

The cruise model, leveraging guest data for tailored offerings, contrasts with airports’ slower progress, in Heinmenann’s view, though initiatives like L’Oréal’s consumer-centric “pentarchy” with SAS in Copenhagen show promise.

Sustainability is non-negotiable, added the company, with tenders prioritising ESG. On Heinemann’s side, progress includes the global reduction of approximately 50 percent of Scope 1 and 2 emissions (energy and electricity) since 2019, its first supplier shipments by rail (by L’Oréal and HVOtrucks by Diageo), and new joint green business plans made with Diageo, Tony’s Chocolonely and EssilorLuxottica.

Outlook: Heinemann’s path forward

Geopolitical and economic instability, dubbed the “new normal”, continues to disrupt planning according to Spanger.

Sales highlights of the Gebr. Heinemann Annual Business & Sustainability Report 2024. Source: Gebr. Heinemann.

A decline in Russian and Ukrainian customer numbers, alongside China’s spending slump, has dented luxury sales, particularly in Asia Pacific, he added.

Heinemann’s resilience shone in Israel, with record February 2025 turnover despite conflict, but such volatility underscores global risks, said the company.

Heinemann projects double-digit growth in 2025, building on a Q1 +13% above the same period in 2024.

Priorities include scaling Jeddah, Keflavik, Noida and Antalya, refining assortments and restoring Asia Pacific profitability.

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