During a press briefing in Hamburg today Gebr. Heinemann told TRBusiness that the company generated a controlled group turnover of €3.6bn ($4.03bn) in 2015; which represents an impressive 13% growth year-on-year.

 

According to TRBusiness Editorial Director Doug Newhouse, reporting from Hamburg today, perfume & cosmetics accounted for 32% of the group’s turnover. Liquor, tobacco and confectionery represented a share of 58%; fashion & accessories 9% and other 10%.

 

TRBusiness Editorial Director, Doug Newhouse was invited to the briefing today and will offer more details from the event in due course.

 

Heinemann revealed that airports accounted for the lion’s share of turnover with 75% of the $4bn total. Border stores represented 10% of turnover; cruise & ferry business represented 5%; airlines & catering 4% and other, 6%.

 

Newhouse also reports that Nadine Heubel has been appointed CEO of Heinemann Americas – succeeding Steffen Brandt – and that John Baumgartner (previously of Inflight Service Europe AB) will head up Heinemann’s airline division.

 

The company also reveals that it has signed a contract extension running until 2027 at Hamburg Airport for the operation of Heinemann existing Duty Free & Travel Value shops and three other concept shops. [More on this to come].

 

Heinemann revealed today that any future acquisitions it plans to make will be looked at individually, “in order to, for example, speed up market entry”. The company cites its joint ventures at Amsterdam Airport Schiphol and Duty Free International in Malaysia as ‘positive examples’ of acquisitions in 2015.

 

‘LEADER IN EUROPE’

The global travel retailer, with over 135 years’ experience in this sector, now claims to be the market leader in Europe with around 30% market share.

 

Gebr. Heinemann revealed today in Hamburg that it is set to continue investing ‘intensively’ in the travel retail market in 2016 and one of its key projects will be the expansion of the business of Heinemann Asia Pacific.

 

Overall, the Hamburg-based trading company says that it ‘is satisfied with the 2015 financial year’.

 

In Malaysia the subsidiary will grow with the recently signed joint venture with Duty Free International (as mentioned above). Other highlights include the further optimisation of retail operations at Amsterdam Airport Schiphol; the huge new retail project at Istanbul New Airport; ‘successful operation’ of around 10,000sq m of retail space at Sydney Airport, as well as the further development of the company’s digital endeavours.

 

SYDNEY: A SHOWCASE FOR HEINEMANN

“Last year the Sydney Airport shops successfully developed into a showcase for the Heinemann Duty Free brand,” says Heinemann. “2016 will be the first year of full operation.”

 

Speaking of other joint ventures entered into recently, in March 2015 Gebr. Heinemann acquired 60% of the shares in Schiphol Airport Retail (SAR), with the Schiphol Group retaining a 40% holding.

 

The joint venture for the supply of spirits, tobacco goods and confectionery after the passport and security checks at Amsterdam Airport Schiphol came into force in May.

 

 

Since then Gebr. Heinemann says it has created ‘a high level of efficiency for this site’ by centralised purchasing and consolidated deliveries. In 2015 the main focus of the major project at Istanbul New Airport was on architecture and logistics. The leasing phase will start in 2016.

 

Due to international expansion, Gebr. Heinemann’s total retail space now stands at a gargantuan 115,000sq m in 2015.

 

GROWING HOME DELIVERY SERVICE

Gebr. Heinemann says that one of the aspects of the business it is focusing on is its approach to multi-channel shopping. “42% sales growth for the Home Delivery service shows that the company is on the right course with its digital strategy,” says Heinemann.

 

Despite the double-digit percentage decline in ruble-based countries. Heinemann says it is looking ahead with ‘optimism’ for the Russian market.

 

“The Ukraine crisis, a sharp drop in the oil price and the resultant inflation have led to people travelling less and spending less,” adds the company. “Regional airports have been hit the hardest. The results for the large airports in Kiev and Moscow are still good.”

 

 

 

Gebr. Heinemann says it will continue to invest in this region and will look to expand its market share from the current 40% to 50%; even if the market remains difficult.

 

The different distribution channels – airport, inflight & catering, border shops as well as cruises & ferries – are apparently developing positively with single to double-digit sales growth.

 

Heinemann says it is now offering a global solution for their distribution customers and will expand especially their cruise business in the American market.

 

‘NOT ONLY ABOUT RETAIL CREATIVITY’

Gebr. Heinemann also aims to strengthen its know-how and activities in the area of fashion and accessories. To this end, the company has invested in this category as well as watches and jewellery.

 

“As a family-run business, Gebr. Heinemann must, more than ever, stand out in order to remain competitive,” concludes the retailer. “It is not only about ‘Retail Creativity’. Besides the margins negotiated by the purchasing division, cost structures will have a decisive influence on the company’s profit opportunities.

 

“Organic growth remains the company’s central strategy. Hence, Istanbul New Airport, which, with its retail space, is comparable to gaining five large concessions, signifies the success of this strategy. “