Heinemann extends Hamburg contract as turnover tops US$4bn
Travel retailer Gebr. Heinemann has extended its retail partnership with Hamburg Airport to 2027, as the family-owned company’s annual sales exceed US$4 billion.
The early extension of the Hamburg contact comes as the German retailer announced its controlled group turnover had reached €3.6 billion (US$4.07 billion) for the full year, up 13% on 2014.
Retail operations accounted for €2.8 billion (US$3.16 billion), with the distribution side of the business contributing €800 million (US$904 million).
Heinemann and Hamburg Airport have worked together for more than 22 years. The retailer currently operates two Heinemann Duty Free shops at the airport, a Destination Hamburg store and two fashion boutiques.
“I am delighted about the extension of our contract with our longstanding partner, Gebr. Heinemann, and the associated continuation of the successful duty free shops at Hamburg Airport,” said Michael Eggenschwiler, Hamburg Airport CEO.
“The company makes travelling a true experience for our passengers, because for many people shopping in these attractive shops is a highlight when they take a flight.”
Raoul Spanger, executive director for retail at Gebr. Heinemann, added: “We have a very trusting, friendly relationship with Hamburg Airport, which is based on profound mutual respect.
“We are delighted that have now been able to agree an early extension of the contract with our home airport, Hamburg Airport, of 11 years. I would like to thank all our staff for their excellent work.”
The board announced its financial performance and latest news at a press conference in Hamburg yesterday, attended by The Spirits Business.
A year of currencies
Positive developments from the year include the expansion of Heinemann Asia Pacific through a joint venture partnership with Duty Free International in Malaysia; retail optimisations at Amsterdam; the development of the 10,000 sqm retail space in Sydney, and preparations for Istanbul New Airport, with the leasing phase set to start in 2016.
Due to the international expansion, Gebr. Heinemann’s global retail space stands at 115,000 sqm, and the company now commands a 30% market share of European airport duty free sales.
Claus Heinemann, Claus Heinemann, Gebr. Heinemann co-owner alongside and Gunnar Heinemann, said the company is now targeting 10% growth in 2016.
Geopolitical and economic instability was high on the agenda, with 2015 a year “very much influenced by currencies”, detailed Claus Heinemann Russian, Norwegian and Turkish customers were most affected.
Despite the challenges in Russia, “we do see a positive outlook for 2016”, said Peter Irion, executive director. “When I look into the future we will invest further.” The company said it will look to expand its market share in the country from 40% to 50%.
With operations in Tunisia, Egypt and Turkey, Heinemann was hit by external factors in 2015. “North Africa is very tough,” said Raoul Spanger. Sharm-el-Sheikh now has “hardly any business”, and Tunisia is “very difficult”.
In terms of channel split, airports accounted for 75% of Heinemann’s turnover, border stores 10%, cruise and ferry 5%, airlines and catering 4%. The remainder was from “other channels”.
Liquor, tobacco and confectionery made up 58% of the retailer’s turnover, followed by perfume and cosmetics (32%) and fashion and accessories (9%) with the remainder amounting to 10%.
More to follow.