ICELAND. Gebr. Heinemann and airport company Isavia today (9 September) officially opened the new-look ÍSLAND Duty Free stores at Keflavík Airport, completing a major revamp of the retail offer since Heinemann was awarded the duty-free concession in 2025.
The operation covers approximately 4,000sq m across three locations – a departures store of around 1,600sq m, a 2,000sq m arrivals shop and a gate store.
At least 30% of the brands offered are Icelandic, with more than 370sq m dedicated to local products, regional storytelling and brand experiences. The new-look stores also introduce selected international names alongside digital and convenience services.
The Moodie Davitt Report had been due to attend the opening in person alongside other media but joined the 10am press conference via livestream after grounded flights at London Heathrow prevented the journey to Iceland.
Gebr. Heinemann Co-CEO Max Heinemann said: “With ÍSLAND Duty Free, we are opening a new chapter for travel retail at Keflavík Airport. We are grateful for Isavia’s trust and proud to bring our international Travel Retail expertise to Iceland with deep respect for the country, its people and its brands.
“Today is a very important day, and it’s not necessarily just for us as Heinemann or just for Keflavík. It’s big for travel retail in Iceland and the country in general. Airports play a vital role in tourism and in the representation of culture.”
Isavia Chief Commercial Officer Ómar Svavarsson added: “When we looked at the future of duty-free retail at Keflavík, we were not simply looking for an operator. We were looking for a long-term partner who could combine international expertise with genuine appreciation for Iceland, its culture, its products and its people.”
Rooted in Iceland
The stores have been designed around Iceland rather than a standard international airport format, taking cues from geothermal lagoons, flowing water, lava fields and the country’s changing terrain.
In departures, an open shopfront and multi-directional access lead into the main categories. A dedicated regional area, developed with Icelandic firm Basalt Architects, features a milky-blue floor reminiscent of popular attraction the Blue Lagoon, a ceiling installation inspired by geothermal steam and 3D-printed sculptural elements.
The arrivals store places greater emphasis on speed and convenience, with broad routes towards baggage reclaim and an assortment led by liquor alongside beauty, confectionery, tobacco, gifting, accessories and travel essentials.
A regional fixture introduces local products to arriving passengers, while a selfie point by Icelandic mural and street artist Juan Arctic adds another destination-led element.
Isavia Director Commercial Berglind Snæland said: “We are pleased to see the ideas from the tender process now brought to life. The new shops offer travellers a much-improved experience, with better orientation, a stronger selection and an authentic sense of Iceland from arrival to departure.”
Gebr. Heinemann Chief Commercial Officer Inken Callsen said the scale of the Icelandic offer goes well beyond the retailer’s usual regional approach.
“It’s not a touch of Iceland – it is really the DNA of Iceland that you will see in the store,” she noted.
The initial ambition was for at least 20% of brands to be local. Callsen said the resulting 30% share is the highest across the Heinemann network.
“If you take Germany, we generally have under 10% local or regional brands. We have a stronger regional approach in countries such as Hungary or in cities like Vienna, but it has never been 30%. The second-highest share would be Italy, with 24% local brands.”
The Icelandic offer extends across categories including beauty, confectionery, spirits, wellness and gifting. Four fully personalised Icelandic brand environments give local producers dedicated space within the stores.
Asked by The Moodie Davitt Report how Isavia ensures that this commitment translates into genuine commercial opportunities for Icelandic companies rather than simply visibility, Snæland said the requirement was built into the tender process.
“In the tender we were very clear that we wanted to have a particularly strong representation of Icelandic products,” she said.
Max Heinemann added: “Giving the space is of course always a matter of calculation, but from what we understand and what we see in the numbers, this is probably only growing rather than reducing over time.”
Building around the passenger
Across the three stores, the service offer includes self-checkout, digital shelf labels, Click & Collect, Reserve & Collect, webshop integration and a loyalty programme, alongside interactive product discovery tools and digital price and quota guidance.
Between 120 and 160 employees work across the operation depending on season and peak periods.
Gebr. Heinemann Director Sales Nordics Jens Wolf said: “Our focus was to create an offer that is both clearly rooted in Iceland and relevant for international travellers. The result is a balanced retail concept that gives Icelandic producers strong visibility while adding selected global brands and services.”
Wolf said the loyalty programme has attracted close to 2,000 members within around eight weeks.
He also highlights the development of Blue Lagoon Skin Science within the departures offer. The Icelandic skincare brand had previously operated a standalone store but now has its own shop-in-shop within the duty-free space.
Alongside the Icelandic offer, Heinemann has introduced additional international names. Callsen highlighted niche fragrances including Jo Malone London, Byredo, Diptyque and Tom Ford, as well as Sol de Janeiro, Summer Fridays and a handful of Korean beauty specialists.
“We bring in niche fragrances because this is the trend,” she said. “In addition, we have seen that they are not present in domestic markets. So it’s a double effect – bringing the brands into the travel retail store and bringing the brands into the country.”
To mark the opening, ÍSLAND Duty Free is also offering a limited ‘Hæ from Iceland’ Toblerone and a dedicated Blue Lagoon Skin Science Grand Opening promotion, both exclusive to the operation.
Sustainability measures have also been incorporated across the redevelopment.
The regional fixtures are made using 3D robotics from Nagami and recycled plastic, partly sourced from the ocean. Other measures include Omexco Minerals wall coverings produced from recycled paper and fine mica, energy-efficient LED lighting, digital shelf labels and the removal of single-use plastic bags.
A Dopper water station, delivered in collaboration with Isavia, offers passengers free tap-water refills.
A longer-term view
Isavia CEO Sveinbjörn Indriðason said: “At Keflavík Airport we connect the world through Iceland, and the experience we offer here matters. A strong duty-free offering plays an important role in the airport’s competitiveness.
“With Heinemann’s industry knowledge and expertise, we look forward to further enhancing the customer journey for travellers while creating value for Icelandic brands and the country as a whole.”
Max Heinemann told The Moodie Davitt Report that the biggest growth opportunity at Keflavík is closely linked to the development of Icelandic tourism.
“When it comes to growth opportunities, it stands and falls with tourism,” he said.
“If we look at all the work that goes into promoting Iceland as a destination and getting flights, direct or indirect, from Asia and of course the US, the general appeal of what Iceland has to offer is incredible.
“We have to be very realistic. It would be a beautiful world if people just came here because of ÍSLAND Duty Free. If we reach that level, we can congratulate ourselves. But in general, we will play our part in making tourism worthwhile.”
Callsen pointed to a second opportunity in converting a greater proportion of existing passengers into customers: “It’s about tourism, like Max says. But we need these tourists to convert into customers.
“Even if it’s not an increasing number of tourists, we can still increase the number of customers by transferring them into customers. So there is a lot to do.” ✈
Scroll to see more photographs from ÍSLAND Duty Free’s official opening
