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Review Insights Outlook Business Year 2017 Dear Readers Review Insights Outlook Business Year 2017 Dear Readers, Gebr. Heinemann experienced healthy and robust growth in 2017. We have held our own very well against our competitors and have been able to capi- talise flexibly on market conditions. This has in turn enabled us to expand on our strong position in Europe. The return of Russian holidaymakers to Turkey was good news for our business and compensated for the reduction in travel from Western Europe. In the cruise sector, we now operate globally from our base in Miami. We are also pleased with our development in the Asia-Pacific region. We are continually expanding our business in Malaysia and Sydney and now have an additional presence at Hong Kong International Airport. Our new joint venture at Tel Aviv Airport, which began operations on 1 Janu- ary 2018, has been another source of pride for us. Duty Free has an excellent position in Israel. Further to that, all of our departments are currently focusing on their preparations for the planned opening of the new airport in Istanbul at the end of this year. Our staff here at Gebr. Heinemann are all dedicated to conserving resources. We are committed to monitoring the economic, social and ecological impacts of the company’s business. Our pilot project for this is a collaboration with the ocean protection organisation OceanCare to reduce the amount of plastic bags in our shops. We hope you enjoy reading our Annual Report. Sincerely, Claus Heinemann Gunnar Heinemann I. Editorial Owners II. Contents CORPORATE NEWS 08 Interview – Owners and Executive Board 14 The Corporate Philosophy of Gebr. Heinemann 18 Financial Statements 20 Strategy Day 2017 in Hamburg 26 HR News: internal global job market for international development 30 Heinemann Corporate Responsibility: an update 34 Expert interview: Matthias von Randow, Executive Director of BDL GLOBAL PRESENCE 40 New business: tender wins 2017 42 New, expanded, extended: supply contracts 2017 CONTENTS 44 Shop openings and extended concessions 2017 48 Joint venture with James Richardson wins tender in Tel Aviv 54 New ways in Norway: new generation of Duty Free shops 62 Spurt towards the finishing line at Istanbul New Airport Experience the world of 66 Augmented reality at Berlin-Schönefeld Gebr. Heinemann once again 70 The new shopping concept on "Mein Schiff 6" in our Annual Report. We 78 The new Gebr. Heinemann distribution brand have captured twelve exciting 86 Marketing Summit 2017 months and interesting topics 90 Russia on the rise HELLO AND from around the globe in 98 Exclusive supply contract with Mauritius Duty Free Paradise images and text for you. So 102 "On top of onboard": Inflight & Catering insights WELCOME get reading! You will also find 106 Best practice case: Albrecht Dürer Airport Nuremberg QR codes that link some of 114 Trends and innovations change the world of Perfume & Cosmetics the texts to films. Enjoy! 120 Copper Dog with exclusive premiere at Heinemann 124 A new multibrand concept for luxury shopping experiences 130 Travel Retail Data Innovation Group with positive development 136 Procurement & Facility Management: purchase globally, save locally 140 Strategies for the growing demands of global logistics networks 146 The development of Heinemann Asia Pacific 150 Interview with Max Heinemann 156 Sweet Dreams at Hong Kong International Airport 162 Heinemann Australia – the complete update 168 Heinemann Tax & Duty Free opens at Gold Coast Airport 172 Heinemann Americas with full steam ahead Lara Vitzthum, Head of Corporate Communications SPOTLIGHTS 2017 180 2,950 years at Gebr. Heinemann 184 Awards 194 Redesigned HSV box: impressive impressions 196 "My Highlight" III. Imprint CORPORATE NEWS About the current situation of Gebr. Heinemann worldwide P_8 CORPORATE NEWS a country that would have good reason not to wel- Free shops. This generates a high level of aware- come Germans because of the Holocaust. In fact, ness throughout the country. On top of this, Duty the opposite is true: we feel very welcome there.” Free has an excellent image because it is a mark of quality that is synonymous with original mer- 2017 WAS A Raoul Spanger: “The two family companies Danos chandise.” and Heinemann approached one another and de- RESPECTABLE YEAR. cided to pool their resources. The result is a strong How did Heinemann’s top airports develop in partnership that is very important to us because 2017? An interview with the board members of Gebr. Heinemann the Danos family has a wealth of experience as a long-standing operator at the airport in Tel Aviv.” Raoul Spanger: “All of our top airports developed positively. We saw the best performance in Stephan Ernst: “We soon realised how much we Sydney: the marketplace concept with several have in common. Our working relationship was subtenants and bars is working extremely well. characterised by trust and commitment right from This is a new approach that is catching on. In the the start. Just like Heinemann, Richardson keeps first full year since introducing the concept, we saw its word. Personally, I am impressed by the joie de growth of 10 per cent in Sydney. This development The Owners and Executive Directors agree that 2017 was a "respectable" year for Gebr. Heinemann. But does "respectable" vivre and openness of people in Israel. It’s an ex- goes hand in hand with sustained passenger also mean successful? What were the most important occurrences and changes for Gebr. Heinemann in the international citing country!” growth due to a rising number of Asian travellers. travel retail market? And what are the company’s plans for 2018? An interview with Claus and Gunnar Heinemann, Norway posted good figures, too, with growth of Kay Spanger, Raoul Spanger, Stephan Ernst and Peter Irion about how the Hamburg-based family company is operating How much is the Duty Free business in 6.5 per cent. However, we noticed that passengers globally. Tel Aviv worth to Gebr. Heinemann? first needed time to adjust following the opening of new shops at the considerably larger terminal The global economy is robust and presents and in border shops. We are pleased with develop- “Annual sales total 400 million in the spring. For that reason, we did not achieve opportunities for growth. Which opportunities ment in Asia, too: we are continuously expanding Claus Heinemann: US dollars, which will immediately make Tel Aviv the more ambitious target we had set ourselves. was Gebr. Heinemann able to utilise in 2017? our business in Malaysia and we won a major con- our third largest concession after Istanbul and Business in Frankfurt grew by 2 per cent. However, fectionery tender in Hong Kong in September 2017, Oslo. On top of this, the average revenue per pas- we have seen over the past two years that Asian Claus Heinemann: “We experienced healthy, ro- which included eight new shops. Three years after senger will be the highest of any Heinemann site.” travellers are becoming more selective about bust development in 2017. For instance, we were our successful premiere in Sydney, we will add a travelling to Frankfurt. That is why we were unable able to expand on our strong position in Europe, second Australian location at Gold Coast Airport “The large market volume stems to record stronger growth there. Developments in especially in Eastern European countries such as in the future.” Stephan Ernst: from the fact that Duty Free customers at the air- Istanbul – our number one location for sales – were Russia, Ukraine, Georgia and Romania. The re- port in Tel Aviv have a ‘pick up on arrival’ option. positive, too. This took us by surprise in a positive turn of Russian holidaymakers to Turkey was good Gunnar Heinemann: “We are also immensely This means they can shop prior to their outbound way, considering the current environment.” news for our business and compensated for the re- proud of our recently established joint venture at flight and collect their purchases when they return. duction in travel from Western Europe. We are the Ben Gurion Airport in Tel Aviv, which has started Israeli passengers account for 70 per cent of sales. “Istanbul enjoyed consider- market leader in Scandinavia, where Norway and operating in early 2018. This partnership with the Claus Heinemann: Passengers are keen to make the most of their able traffic not only from Russia, as already men- Denmark performed well. In the cruise sector, we family company James Richardson has special sig- Duty Free allowances.” tioned, but also from Arab countries. By contrast, now operate globally from our base in Miami. We nificance for us. Israel may be a small country, but it arrivals business is decreasing due to the weak are also satisfied with our retail activities at airports is a large market. It means a lot to us to operate in Gunnar Heinemann: “These figures show that currency. Turkish Airlines has stabilised and fur- ‘lugging around’ purchases when they are travel- ther strengthened Istanbul as a transfer airport. ling halfway around the world remains a challenge This is good news. After all, the largest airport in for Duty Free customers. In Israel, passengers the world is being built there to cater for this trans- have a convenient option, which leads to outstand- fer business. Many of our staff from throughout ing sales.” the company will be involved in working on this project in Istanbul in 2018. Turkey is the most im- Kay Spanger: “Much like in Scandinavia, sales are portant export market for Gebr. Heinemann.” incredibly high compared to the small population. In Israel, we will be the largest retailer in the coun- Stephan Ernst: “The INA project is now much more try in most product categories. This makes it an challenging than originally expected due to devel- interesting prospect for suppliers, too.
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