Hamburg, 29 March 2016. Gebr. Heinemann is the largest independent duty free retailer and distributor worldwide and the only company offering over 135 years’ experience in this sector. The Hamburg-based trading company is satisfied with the 2015 financial year. The company generated a controlled Group turnover of 3.6 billion euros*, which equates to growth of +13 per cent on the previous year. Gebr. Heinemann is the market leader in Europe. Its market share in the European airport duty free market is around 30 per cent.
Gebr. Heinemann is set to continue investing intensively in the travel retail market in 2016. One of the key projects is the expansion of the business of Heinemann Asia Pacific: In Malaysia the subsidiary will grow with the recently signed joint venture with Duty Free International. Other highlights are the further optimisation of retail operations at Amsterdam Airport Schiphol, the project for Istanbul New Airport, successful operation of around 10,000 square metres of retail space at Sydney Airport as well as the digital further development of Connected Travel Retail.
Last year the Sydney Airport shops successfully developed into a showcase for the Heinemann Duty Free brand. 2016 will be the first year of full operation. In March 2015 Gebr. Heinemann acquired 60 percent of the shares in Schiphol Airport Retail (SAR), with the Schiphol Group retaining a 40 percent holding. The joint venture for the supply of spirits, tobacco goods and confectionery after the passport and security checks at Amsterdam Airport Schiphol started operations in May. Since then Gebr. Heinemann 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 Istanbul New Airport was on architecture and logistics. The leasing phase will start in 2016.
Due to the international expansion, Gebr. Heinemann stands at 115.000 square metres retail space in 2015.
Gebr. Heinemann wants to impress its customers with the best multi-channel offer. 42 percent sales growth for the Home Delivery service shows that the company is on the right course with its digital strategy.
On the Russian market the Hamburg-based trading company is looking ahead with optimism, despite the double-digit percentage decline in ruble-based countries. The Ukraine crisis, a sharp drop in the oil price and the resultant inflation have led to people travelling less and spending less. Regional airports have been hit the hardest. The results for the large airports in Kiev and Moscow are still good. Gebr. Heinemann will continue to invest in this region and expand its market share from the current 40 percent to 50 percent, even if the market remains difficult.
The distribution channels airport, inflight & catering, border shops as well as cruises & ferries are developing positively with single to double-digit sales growth.
Gebr. Heinemann is now offering a global solution for their distribution customers and will expand especially their cruise business in the American market.
The company sees potential for growth in a virtually saturated market in the field of so-called Travel Retail Exclusives (e.g. limited editions in the areas of wine, such as Schloss Vollrads 1211 Riesling or Château Haut-Bailly), in the expansion ofclassic categories (such as luxury fragrance concepts: Tom Ford, Hermès, Jo Malone and Kilian) and sub-categories (e.g. Haircare and Dermacenter). Travellers’ attention will also be drawn to outsider categories. This approach has already been successful in the area of wine. In conjunction with this, Fine Food is also to be further consolidated.
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 the professionalisation of two separate purchasing areas: Fashion andAccessories as well as Watches and Jewellery.
Gebr. Heinemann will work with suppliers to acquire more global shoppers. From suppliers the company expects an even better understanding of synergies in different categories.
As a family-run business, Gebr. Heinemann must, more than ever, stand out in order to remain competitive
. 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. Possible acquisitions will be looked at individually, in order to, for example, speed up market entry. Positive examples from 2015 are the joint venture at Amsterdam Airport Schiphol and the joint venture with Duty Free International in Malaysia.
*As of March 2016: Preliminary group turnover of Gebr. Heinemann and affiliates.
