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“This puts us as by far the number one [travel retailer] in Europe in terms of buying power“ |
Claus Heinemann |
GERMANY. At a landmark media briefing in Hamburg yesterday, Gebr Heinemann outlined its global ambitions, delivered a refreshingly transparent financial break-down of its retail and wholesale/distribution activities, and spoke about its heavy investment strategy, particularly in digital media and e-commerce.
[We’ll bring you an extensive report and further analysis of the event in our March print edition, which will appear at the Duty Free Show of the Americas in Orlando].
The family-held company, established in 1879, has traditionally maintained a low public profile, guarding its numbers carefully. But in an age of industry consolidation and intense competition for retail tenders large and small, it was important that the industry had a clear understanding of Gebr Heinemann’s position in the market, said Co-Owner Claus Heinemann, commenting on the new openness.
In 2013 Gebr Heinemann generated a retail turnover (directly managed) of €2.4 billion with an additional €800 million from wholesale. Total turnover rose +2% year-on-year with a +6% rise projected for 2015.
That would position the company as the industry’s fourth-biggest retailer in The Moodie Report’s restated 2012 Top 25 rankings and a likely similar position for last year [see chart below].
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The Gebr Heinemann Board yesterday outlined the company’s ambitious development strategy and presented a breakdown of its retail and wholesale businesses. (Pictured from left): Gunnar Heinemann, Raoul Spanger, Stephan Ernst (Finance, IT), Claus Heinemann, Kay Spanger, Peter Irion (Distribution) |
“This puts us as by far the number one [travel retailer] in Europe in terms of buying power,” said Claus Heinemann, who fronted the meeting together with fellow Co-Owner Gunnar Heinemann, and the other board members, Kay and Raoul Spanger and Peter Irion. Claus Heinemann said the company has a 15-16% share of the European travel retail market.
Its top three markets are Norway, where the company has enjoyed astonishing success at Oslo Airport in particular, with €575 million, followed by Turkey (€545 million), driven by Istanbul, and Germany (€400 million), led by Frankfurt.
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Oslo Airport, driven by a tremendous Arrivals duty free business, has become the lynch pin of Gebr Heinemann’s biggest market, Norway |
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Gunnar Heinemann: “80% of our retail turnover is ‘safe’ in being secured until or beyond 2020” |
Critically, some 80% of Gebr Heinemann’s turnover is secured until 2020 or beyond through long-term concessions, said Gunnar Heinemann. By 2020 the company plans to have expanded its current 70,000sq m of retail footprint to 100,000sq m and its concession base from 61 today to 90.
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With its restated number (based on +2% growth in 2013), Gebr Heinemann would move up from sixth to fourth in The Moodie Report’s acclaimed annual Top 25 Travel Retailers ranking for 2012 (the 2013 version will be published in coming months) |
Gunnar Heinemann confirmed the company will participate in the Sydney Airport duty free tender, revealed by The Moodie Report earlier this week. That will be driven by the Max Heinemann-led Asia Pacific team, which now has operations in Indonesia, Malaysia (the new KLIA2, due to open in May) and Sydney (gourmet boutique A Little Something and a National Geographic store).
And this Sunday it will attend Abu Dhabi Airports’ Retail Marketing Launch, which will preview the RFP process for the much-anticipated new Midfield Terminal. Underlining its determination to secure part of this business, the company set up an office in Abu Dhabi last year to ensure it was optimally placed in terms of understanding the market and building relationship.
On the wholesale side, Gebr Heinemann is Europe’s number one player in travel retail and the only one with bespoke sales teams for each channel. Its biggest growth expectations are in Russia/the CIS, Africa, ferries, airlines (a sector in which it has majority control of respected UK company Scorpio Worldwide) and border shops.
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Claus (left) and Gunnar Heinemann (right) with Martin Moodie at yesterday’s landmark media event, held in Gebr Heinemann’s superb ‘Lab Shop’ at its Hamburg headquarters |
TRAVEL RETAIL EXCLUSIVES SURGE IN IMPORTANCE
Among some impressive and surprising numbers unveiled yesterday, one of the stand-outs was the growth in travel retail exclusive business.
At Frankfurt Airport, for example, in confectionery the once-niche travel retail exclusive component last year represented an astonishing 57.7%; in spirits it was 16.7% and perfumes and cosmetics 12.8%. Even in the very traditional tobacco category the share was 6.7%, driven by cigars.
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A true travel retail (and Heinemann) exclusive: The new Boss Unlimited fragrance is available only with Heinemann Duty Free in Germany for several months, before a wider domestic market and travel retail roll-out. Pictured is Hamburg Airport. |
The company is putting especial emphasis on exclusives but only where they represent real value and true differentiation from the High Street, said Director Kay Spanger.
A good example is P&G’s new Boss Unlimited fragrance (pictured), available to Heinemann Duty Free in Germany ahead of any other domestic or travel retail market in the world for a period of months. Another is an exclusive cask of Pernod Ricard-owned The Glenlivet single malt whisky, from which 500-600 bottles will be offered at around €260.
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Germany, led by Frankfurt Airport and buoyed by many other locations, including Hamburg (pictured), is Gebr Heinemann’s third-biggest retail market |
NEW LOGISTICS BASE IN FRANKFURT
Underlining the critical importance it places on strong supply chain management – long considered one of Gebr Heinemann’s major competitive advantages – the company is opening a major new logistics centre in Frankfurt later this year to complement the Hamburg facility.
The company also has strong ambitions in the US, where, as previously reported, former Heinemann Asia Pacific CEO Steffen Brandt last year set up a new operation designed to duplicate the Asia Pacific model.
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Gebr Heinemann retained the key Copenhagen concession in 2012 ahead of tough competition from LS/Aelia and World Duty Free Group |
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Frankfurt Airport is Gebr Heinemann’s leading airport location by sales volume in Germany |
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Budapest in Hungary has flourished since Gebr Heinemann’s market entry in early 2011 |
‘OUT OFSHOP’ CONCEPT TO UNDERPIN DIGITAL AND HOME DELIVERY DRIVE
Gebr Heinemann is placing special emphasis on digital media and home delivery as part of an “˜Out of Shop’ strategy. Using advanced Customer Relation Management tools, the company aims to have a database of 1,000,000 consumer addresses within three years, up from the current 200,000. It is currently testing home delivery at Hamburg Airport with spectacular results to date – average transaction value is four times that of the in-shop equivalent.
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Source: Gebr Heinemann |
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Source: Gebr Heinemann |
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