Gebr Heinemann has reported 2017 was a year of “healthy” development.
Announcing the retailer’s annual financial results, which saw its turnover increase 6.6% to €4.1bn ($5.06bn), Gebr Heinemann co-owner Claus Heinemann said: “2017 was a respectable year for us with healthy development.”
He added: “We were able to achieve this by building on our strong position in Europe, especially eastern Europe with Russia and Ukraine, and Scandinavia, with Norway and Denmark.”
Indeed the retailer’s joint venture with a local partner successfully securing the tender to become the exclusive duty-free operator at Moscow Domodedovo airport, and thus consolidating its position in Russia, was identified as one of Heinemann’s highlights of 2017.
Meanwhile in Scandinavia, the Hamburg-based retailer identified its 6.5% growth in Norway as a positive. Heinemann’s joint venture with Norse Trade, Travel Retail Norway, completed a full refit and expansion of its portfolio and now operates 16,740sqm of retail space in Norway.
Outside of Europe
Although Europe covers 80% of Heinemann’s business, the retailer was keen to point out its success in Asian and American markets.
The retailer’s Asia Pacific arm saw growth of 10% in Sydney airport in the first full year of the new marketplace there; continued to expand its business in Malaysia; and won a tender for eight confectionery shops in Hong Kong International airport.
While in the Americas, Heinemann successfully entered the lucrative Caribbean cruise market in 2017.
More growth anticipated
Looking ahead to 2018, Claus Heinemann said: “This year we are expecting healthy sales growth. We want to achieve a greater stronghold in Asia and the Americas; we will not forget Europe, but the potential to grow in Asia and America is even stronger.”
One specific highlight for Gebr Heinemann is the anticipated opening of Istanbul New airport at the end of October. The new Turkish airport has the capacity same to become the largest in the world and Gebr Heinemann will be operating its duty-free.
Heinemann added: “We will invest approximately €100m on the ongoing Istanbul New airport project. A lot of our people are working in Istanbul so that is a strong investment on our side.”
For more insight from Gebr Heinemann’s 2017 financial results and analysis of the retailer’s business strategy, see the May edition of DFNI, which will be distributed at the TFWA Asia Pacific Exhibition & Conference in Singapore.