Copenhagen Airport Chooses Heinemann For A Further 10-Year Retail Stint

Copenhagen Airport has decided to extend the retail concession contract it has with Gebr. Heinemann for another ten years giving the German travel retailer a surer footing from which to develop new shopping projects and put sales on a stronger trajectory as traffic rebounds at the Danish hub.

A major change will be core duty-free and travel retail store increasing in size by over 54% within three years allowing new regional brands and products to be listed across all categories, something that travelers have been asking for.

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Part of the shop concept is to create a strong connection to the locality and the region by lifting the volume of local items. The design of the shops—with a focus on wood—has a very Scandinavian look and feel much like other big airports in the Nordics.

Sustainability targets will also be part of the build and these will be defined in cooperation with the airport.

The contract was signed on Tuesday at family-owned Heinemann’s headquarters in Hamburg. The retailer and distributor has been present at Copenhagen Airport since 2007. It is one of two key locations for the company in the Nordics alongside Oslo Gardermoen Airport which was recently renovated via the joint venture Travel Retail Norway.

Copenhagen Airport’s chief commercial officer Peter Krogsgaard said that “it had been a priority” to continue the close cooperation that had been built up over more than 15 years. “With the major expansion of the terminal area between Gates B and C we have the opportunity to continue innovating,” he added.

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Katrin Bamler, managing director at Gebr. Heinemann Retail said that the renewed contract would allow for a “commitment to grow together” because the new horizon, a decade out, means that there is a greater sense of security in terms of investments and having enough time to ensure there is a return on them.

She said in a statement: “As part of this partnership extension, we will elevate the shopping experience through an expanded sales area, making sure that Copenhagen Airport remains a top location for travel retail.”

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Heinemann operates a total of six shops at the hub, the largest of which is the main retail space covering 28,000 square feet but which will be expanded to 43,000 square feet by 2026. The other, much smaller, stores are in piers A, B and C plus arrivals and they range in size from 4,400 square feet down to 1,400 square feet.

On the lookout for a new CEO

The retail contract extension comes as Thomas Woldbye, the long-time CEO of Copenhagen Airports A/S (the operator of the Danish hub), departs to become London Heathrow’s boss after 12 years at the helm. Woldbye will step down on September 30 and the airport’s board has started the search for his replacement.

The CEO was described by Copenhagen Airports chairman Lars Nørby Johansen as “highly successful”. He was ambitious in leading the airport through a dynamic growth period with passenger levels rising to record levels from 20 to 30 million in eight years. “And with a steady hand he guided us through the troubling Covid pandemic,” said Nørby Johansen.

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On the non-aeronautical front (the part of the business that covers shops, hotels, parking, and leasing) Covid-19 did some damage with revenue in 2022 hitting 1.67 billion Danish krone ($243 million), down 13% from pre-pandemic 2019.

While the airport made a pre-tax loss of 59 million Danish kroner ($8.6 million) for the first quarter of 2023, the appetite for traveling is robust, and overall revenue is expected to grow by 10% this year. That figure will depend heavily on the number of passengers, which is expected to climb to more than 25 million this year. If the airport reaches those volumes it expects a pre-tax profit in the $22-29 million range for the year.