DENMARK. Heinemann unveiled its revamped core duty free store at Copenhagen Airport (CPH) to media on Tuesday and told The Moodie Davitt Report that it expected the refreshed unit to see sales rise by at least +10% as a result of the changes.
The Hamburg-based global travel retailer has added strong Copenhagen theming – plus features that will attract Millennial travellers in particular – at the redeveloped and expanded 2,600sq m store (an increase of 200sq m).
Gebr Heinemann Executive Director for Retail and HR Raoul Spanger said: “The city of Copenhagen is one of the most important centres of design, fashion and beauty trends and therefore a perfect source of inspiration for us. This is why we specially opted for a Copenhagen-styled shop concept inspired by an even greater local sense. Together with the airport, we have implemented the shop of the future in Copenhagen.”
Design elements, developed by Johannes Torpe Studios, include an emphasis on bright, modern colours as found in the Nyhavn area of the city; greenery and plants throughout to represent the parks and lush areas of the Danish capital; cheerful light garlands as found on Copenhagen’s waterfront promenades; a nod to the city’s cargo bikes; and a generally ‘homey’ feel that combines modernity and tradition.
From a commercial perspective there are digital interfaces to engage consumers, more cross-category promotions to leverage sales across departments (for example Cognac with chocolate), numerous decoration columns acting as anchor points for better orientation, and an effort to clearly present discounted products to travellers.
This has been achieved by placing them near to the curvy central walkway to encourage customers to stop and rummage in ‘bargain bins’ at the start of the shop for instance, or examine pallet-style stacks of ‘super deals’ further into the retail space.
Gebr Heinemann Director of Retail Sales Sören Borch, explained: “We want to create exclusive areas where you can find the latest brands, but at the same time we see a huge growth in low-cost traffic and Millennials. Therefore we have developed impulse areas that are price driven.”
‘HYGGE’ PHENOMENON BROUGHT TO LIFE
The standout feature of the new store is the debut of #LookLab, the shop-in-shop dedicated to colour cosmetics.
It offers novel features such as a Korean brands section (including TonyMoly and Dr Jart+), niche cosmetics to attract younger travellers, a well publicised ‘selfie point’, all in an airy space that is not height-restricted like much of the rest of the store.
Shoppers can immediately upload images from the #LookLab photo booth to the 64 digital screens – called the ‘Whirlwind’ – that hang like a large digital chandelier.
A digital wall also allows customers to change the images on the Whirlwind to graphics from a pre-set selection, as well as find other interesting information that could be music or lifestyle related.
All these aspects are brought together using the idea of ‘hygge’, the word that encapsulates the Danish attitude to life and which has become a global phenomenon. It combines a sense of happiness, togetherness and comfort.
THE 30 X 30 X 30 ENIGMA
It is hoped that the ‘hygge’ aspect will encourage more shopping and deliver bigger sales, especially from younger under 30s travellers who have not been strong buyers in the past. This is something that CPH operator Copenhagen Airports wanted to address.
Some hard discussions occurred when Heinemann’s new five-year contract was signed in April 2017 (it started on 1 March this year). But the decade-long partnership has been strengthened as a result of those tough talks, according to both parties.
Director of Airport Sales Lise Ryevad told us: “Since duty free [Heinemann’s operations -Ed] is 50% of the overall turnover of the shopping centre, we are very keen to understand how our passengers shop here.
“We found that young people under 30 shop 30% less than the average passenger. On top of that, this segment is increasing – they already make up 30% of traffic today.”
“The question was, could we make them shop more and what was needed to do that?” she added. “Now there are new brands, younger brands, smaller brands. They may not become the new Lancôme but we have dared – together – to take them in and give these younger passengers more excitement and engagement.”
An ambitious target…
Last year, sales from Heinemann’s main store (and five other smaller units) at CPH reached €140 million, up +2.5% year-on-year. The rebuild is expected to deliver much better growth in the coming 12 months.
Heinemann’s Executive Director Purchasing, Fulfilment & Logistics Kay Spanger, told us: “This is the moment of truth. Everything is ready and LookLab is working so we should see a +10% increase. This is what I think should be a minimum (target) by this time next year.”
Managing Director of Gebr Heinemann Retail Aps in Denmark Esben Keller added: “Now we really have a shop than can deliver what we want for the future. We have found a good balance, with a better focus on Millennials.”
Aside of the Millennial target, the store creates wider general shopper interest to drive growth. Regular sections such Men’s World and Travel Exclusives are supported by stronger positioning of departments such as Naturals (devoted to natural beauty) and Regionals (showcasing liquor brands from the Nordics for example) with a prime position for Danish spirits.
In a large confectionery area – where there are personalised brand spaces, the largest for Danish chocolatier Anthon Berg – healthy-eating and reduced sugar gondolas have been added. Also presented there, but not under a specified banner, are fine foods and Danish butter biscuits which are proving very popular.
By area, beauty has the lion’s share of the store footprint at close to 50%, while liquor, tobacco and confectionery together make up almost another 50%. Accessories represents a small slice at 3%.
Extra space has been allowed for more brands. In beauty they include Byredo, Atelier Cologne and Acqua di Parma, while Jo Malone has been permanently added after its successful trial in a promotions space. An increased range of pharmacy brands and natural cosmetics also features. In an important boost to the tobacco area, Philip Morris International’s Iqos heated tobacco brand joins the line-up.
HEADING FOR A RECORD SUMMER
Last year, Copenhagen Airports posted revenue of DKK840.5 million (US$150.5 million) from its shopping centre business, up +6.0% year-on-year which was helped by an increase in spend per passenger. The airport said this was due to “an improved shop and brand mix” plus a new area at its expanded central security checkpoint.
An average of 80,000 passengers pass through CPH every day – and from 29.2 million passengers in 2017, the airport is currently investing heavily in expansion to accommodate around 40 million in the near future. New flights to and from Asia, including Cathay Pacific and Air China, are increasingly bringing important target groups to Copenhagen.
“Now that we have successfully completed the store conversion phase, all signs are pointing to increasing growth with great potential for a record summer in 2018,” said Raoul Spanger.
See below for more images from the revamped Copenhagen store.
