Heinemann Diversifies In Middle East And India As 2024 Growth Hits 21%
Istanbul Airport remains a sales driver for Gebr. Heinemann and its partners.
Germany-based global travel retailer Gebr. Heinemann is opening up the Middle East/Africa and Indian markets, having seen a reshaping of its geographical revenue in 2024, which hit €4.3 billion ($4.8 billion). This was the first time in the company's 145-year history that it crossed the €4 billion line.
The only family-owned retailer among the major global players in the duty-free industry released its 2024 results on Friday morning. They showed a 21% surge in turnover in a year when the company signaled its entry into new markets following tender wins in India and Iceland, among others.
The growth was better than European rivals. Aer Rianta International achieved 13% last year on managed turnover to €1.4 billion ($1.6 billion) while much larger competitors Avolta and Lagardère Travel Retail reached 6.4% and 12.5% (like-for-like), respectively.
Raoul Spanger, co-CEO of the company alongside fifth-generation family member Max Heinemann, described the result as 'very satisfying' and added: 'Several successes will continue to shape our future growth. These included the start of operations at Saudi Arabia's Jeddah Airport and aboard the country's first cruise ship, Aroya. In addition, we secured tender wins at Noida Airport in India and Keflavik Airport in Iceland, both new markets for our retail business.'
Noida is a greenfield airport under construction by a subsidiary of Switzerland's Zurich Airport through a public-private partnership. It was set to open this month but has been delayed. The gateway could eventually be a sizable contributor to Heinemann's coffers as there are plans to take capacity to 70 million passengers in its fourth phase, if that materializes.
'India is an emerging market in travel retail, and we see the Indian consumer gaining momentum everywhere across our customer portfolio,' said Spanger. India's outbound departures are projected to grow to 52 million by 2029, with an expected CAGR of 11.5% while the country's luxury goods market is the second-fastest growing in the world at 32%, according to Singapore-based consultancy YCP Auctus.
In 2024, Heinemann's main region of Europe saw its share of revenue drop from 59% to 56%, while the Middle East/Africa (which includes Turkey) rose from 31% to 33%. This was due to the strength of the Middle East rather than any inherent weakness in Europe, though the region might take a hit this year as Heinemann exits its retail joint venture at Amsterdam's Schiphol Airport this month as it hands over to Lagardère Travel Retail.
Raoul Spanger: 'We secured tender wins at Noida Airport in India and Keflavik Airport in Iceland, ... More both new markets for our retail business.'
Asia Pacific, meanwhile, was up by one percentage point to 9%, but the retailer has cut investment there for now—and is not the only one—due to low Chinese per-passenger spending that is now only about half of what it used to be.
This has left the door open for the Middle East to take up the slack. Last year, Turkey's Istanbul and Israel's Ben Gurion airports were the top two gateways for sales, followed by the airports of Oslo, Frankfurt and Sydney.
Heinemann operates at Istanbul Airport in a joint venture with Unifree Duty Free and ATU Duty Free and the location has been a key growth engine. The company has expanded in Turkey by winning the tender for Antalya Airport through ATU Duty Free.
Spanger said: 'We see additional potential in the region. To be close to the market and our customers, we elevated our Dubai office, which has been operational since 2023, to the status of a regional headquarters and will continue to strengthen our team there.'
Bernard Schlafstein was promoted from a regional sales director to CEO of Heinemann Middle East/Africa last month while a new logistics hub will open in Istanbul in 2026. Some 33% of the company's consolidated turnover is in the distribution side of the business, where it has its historical roots.
These moves send a strong signal to Heinemann's partners and customers in the Middle East region which is known for its luxury airport retailing in places like Qatar's Hamad Airport, a third-time winner of Skytrax's world best airport shopping award, and Dubai Duty Free.
Having celebrated its 145th anniversary in November 2024, Gebr. Heinemann added a second member of the fifth generation to the business: the co-CEO's cousin, Clara Heinemann. 'She is now actively involved in the company. We think in generations, and our employees and partners can count on that,' said Max Heinemann.
As a senior project manager in the commercial effectiveness department, Clara Heinemann is leading a data-driven global assortment project to define and manage product categories more effectively.
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