Raoul Spanger, Executive Director (Retail & HR) and Member of the Executive Board, Gebr. Heinemann: “We believe in establishing longterm partnerships and contracts, so it is very important for us that we use the recent extension of the contract for Hamburg Airport to 2027 to maintain our home airport as a flagship for the future.”
Raoul Spanger, Executive Director (Retail & HR) and Member of the Executive Board, Gebr. Heinemann, interviewed in Hamburg by Ross Falconer.
A passion for trading is in the genes at Gebr. Heinemann. The small family business established by brothers Carl and Heinrich Heinemann in 1879 has grown over four generations into a major global travel retailer and distributor. Today’s co-owners, cousins Claus and Gunnar Heinemann, are the great-grandchildren of the founders, and the fifth generation – Gunnar’s son Max – became CEO of Heinemann Asia Pacific in 2014.
Amid unprecedented recent consolidation in the travel retail industry – most notably Dufry’s acquisition of both World Duty Free and Nuance – as a family business the Heinemann ‘personality’ shines through. Gebr. Heinemann is established as a top global travel retail operator and, of the major players in the sector, is the only one that continues to be family-run. As a distributor, it supplies more than 1,000 customers in 100+ countries. Meanwhile, in the retail sector, it operates over 300 Heinemann Duty Free and Travel Value shops, fashion label boutiques under licence, and concept shops, at 78 airports in 28 countries, along with shops at border crossings and aboard cruise liners.
Raoul Spanger curriculum vitae
Raoul Spanger was born in 1961 and grew up in Bremen and Hamburg. After completing his secondary education in 1980, he undertook basic military service before training as a wholesale and export clerk. From 1986 onwards he performed managerial sales and purchasing roles for the Peek & Cloppenburg Group before moving to Gebr. Heinemann in Hamburg in 1989 as a Purchasing Manager for accessories, luxury goods and gift items. Having joined the Board of Directors in 1997, Raoul is responsible for the Group’s retail activities, as well as the Human Resources division. The ardent supporter of the HSV football team lives in Hamburg with his wife and has five children.
Among the company’s 6,000 employees, Raoul Spanger certainly personifies its familial spirit. Having joined as a Purchasing Manager for accessories, luxury goods and gift items in 1989, he joined the Board of Directors in 1997, and is now Executive Director (Retail & HR), playing an instrumental role in Gebr. Heinemann’s growth into a global powerhouse. His brother Kay, meanwhile, is also a Member of the Executive Board and Executive Director (Purchasing, Logistics).
Sitting down with Spanger in Gebr. Heinemann’s Hamburg HafenCity headquarters, the nods to the company’s Hanseatic heritage, and its history supplying tax and duty free commodities to ship
chandlers, are all around us, in the very fabric of the building. Spanger has driven Gebr. Heinemann’s exponential retail growth, and we begin by discussing the latest impressive figures revealed by the owners and Board of Directors at the company’s annual press conference. 2015 was, says Gebr. Heinemann, an exciting year punctuated by expansion of the business, and also geopolitical challenges in several key markets.
The company generated a controlled Group turnover of €3.6 billion in 2015 – €2.8 billion from retail and €800 million from distribution. Spanger explains that this equates to 13% growth year-on-year, and positions Gebr. Heinemann as the market leader in Europe with a 30% share of the European airport duty free market. The 2016 target, he adds, is 10% growth.
“Establishing long-term partnerships”
Gebr. Heinemann strives to capture the essence of each city in its retail environments. Browsing Heinemann Duty Free on our departure from Hamburg, the local in-store touches, such as the huge lifesaving belts reflecting the city’s maritime heritage, were myriad.
The breaking news on the day of our interview was the early extension of Gebr. Heinemann’s contract with its home airport of Hamburg, which lays the foundations for the company’s continued growth. The new 11-year agreement runs to 2027. “We have a very trusting, friendly relationship with Hamburg Airport, which is based on profound mutual respect. After introducing our retail brand Heinemann Duty Free in 2008, we have frequently established new services, such as home delivery,” Spanger says. “We believe in establishing long-term partnerships and contracts, so it is very important for us that we use the recent extension of the contract for Hamburg Airport to 2027 to maintain our home airport as a flagship for the future.”
Gebr. Heinemann opened its first store at Hamburg Airport in 1993. Today it operates two Heinemann Duty Free shops, two boutiques – Hugo Boss and Montblanc, a Destination Hamburg shop
with souvenirs relating to the Hanseatic city, and a staff shop. Spanger comments that the 1,400sqm flagship store in the Airport Plaza is especially popular with travellers.
Gebr. Heinemann factbox
CONTROLLED GROUP TURNOVER 2015: €3.6 billion
2015 RETAIL TURNOVER: €2.8 billion
2015 DISTRIBUTION TURNOVER: €800 million
TOTAL AIRPORT RETAIL SPACE: 115,000sqm
TOP 3 COUNTRY MARKETS: Turkey (€631m), Norway (€441m), Germany (€407m)
He highlights four key projects from 2015 that best characterise Gebr. Heinemann’s global expansion: the opening of its own shops at Sydney Airport, the joint venture at Amsterdam Airport Schiphol, the acquisition of retail space at Istanbul New Airport, and construction of the biggest arrival shop worldwide in Oslo.
Istanbul New Airport: “A whole new dimension”
Gebr. Heinemann began 2015 with the greatest single success in the company’s history, when, together with Turkish partner company Unifree Duty Free, it won the tender to operate all airside retail outlets – 53,000sqm – at Istanbul New Airport.
Gebr. Heinemann began 2015 with the greatest single success in the company’s history, when, together with Turkish partner company Unifree Duty Free, it won the tender to operate all airside retail outlets – 53,000sqm – at Istanbul New Airport. The contract term is 25 years from the airport’s opening in early 2018. Spanger enthuses that this is “a whole new dimension” that will allow “some uniquely forward-looking concepts.”
Unifree showcased its initial plans at ACI Airport Exchange 2015, hosted by Istanbul New Airport last December. “Planning is already well underway,” Spanger explains. “At the moment we are
busy with the architecture and logistics. The letting phase starts in 2016, which is when the decision will be made who will be renting the space. Then the operations, purchasing and centre management specialists can start work onsite and in Hamburg.”
Istanbul New Airport will be a showcase for Gebr. Heinemann’s retail creativity. The company is able to draw on 15 years of experience in Turkey and at Istanbul Atatürk Airport, where it partners
with TAV Airports Holding in ATÜ Duty Free. Indeed, the strength of both IST and Turkish Airlines last year saw Turkey overtake Norway to become Gebr. Heinemann’s number one market, with sales of €631 million.
Last year the Sydney Airport shops developed into a showcase for the Heinemann Duty Free brand. While 2015 was all about extensive renovations at the airport, the 7,000sqm flagship store will fully reopen on 6 May, and Gebr. Heinemann’s retail space will total 10,000sqm.
Meanwhile, in March 2015 Gebr. Heinemann acquired 60% of the shares in Schiphol Airport Retail, with Schiphol Group retaining a 40% holding. The joint venture for the supply of spirits, tobacco, and confectionery airside at Amsterdam Airport Schiphol started operations in May, and the first-year target of €85 million was exceeded with sales of €88 million.
The four principles of Gebr. Heinemann
We are one family: “Gebr. Heinemann is a family-run company, and we want to bring that family feel into the workplace. We are guided by family values, we support and respect one another and we enjoy working with each other.”
We lead through trust: “This principle not only applies to the managers, but also to the way each individual works and their basic attitudes. We are reliable, open, honest and we take responsibility for our actions. Trust must always be based on give and take.”
We persevere: “Our successful development as a company over the years is down to the fact that we have always stuck to our course persistently, even when times were tough. Our goals are clear, and we understand that when you stop trying to get better, you stop being good.”
We delight our customers: “This applies to our clients in both the retail and distribution areas. The principle implies that we are consistently personally committed to meeting customer demands,
delivering unrivalled service and establishing long-term relationships.”
In September 2015, a year after the concession had been secured, the first 4,000sqm section of the new Heinemann Duty Free flagship store ‘Mega B’ was opened at Sydney Airport. The shop will span 7,000sqm when it fully reopens on 6 May.
These positive new ventures in Sydney and Amsterdam are a counterpoint to some of the geopolitical challenges of 2015, including the double-digit percentage decline in rublebased countries. The Ukraine crisis, a sharp drop in the oil price, and the resultant inflation, have led to people travelling less and spending less. Regional airports have been hit the hardest. However, Gebr. Heinemann views the Russian market with optimism. “The results for the large airports in Kiev and Moscow are still good,” Spanger says. “Gebr. Heinemann will continue to invest in this region and expand its market share from the current 40% to 50%, even if the market remains difficult.”
Indeed, the company has an exclusive 10-year agreement to operate the retail outlets in Moscow’s new fourth airport – Moscow Zhukovsky – which will be used by low-cost carriers.
Gebr. Heinemann will continue its intensive investment in the travel retail market in 2016. One of the key projects is the expansion of Heinemann Asia Pacific – the subsidiary will grow in Malaysia, for example, with the recently-signed joint venture with Duty Free International.
Meanwhile, distribution channels in airports, inflight & catering, border shops, and cruises & ferries are developing positively with single to double-digit sales growth. Gebr. Heinemann aims to offer a global solution for its distribution customers and will, in particular, expand the cruise business in the American market.
The Gebr. Heinemann owners and Board of Directors: Claus Heinemann, co-owner; Kay Spanger, Executive Director
Purchasing & Logistics; Peter Irion, Executive Director Distribution; Raoul Spanger, Executive Director Retail & HR;
and Gunnar Heinemann, co-owner. Photo Credit: Sandra Platzer
“There is no alternative to going digital”
Gebr. Heinemann is committed to digital innovation and responding to the needs of today’s connected travellers. The Heinemann app, for example, offers access to the online shop, a digital Heinemann & Me membership card, a product scanner and personal shopper function.
The character and sense of place exuded by the Gebr. Heinemann headquarters is mirrored at its airport locations, where the desire is to capture the essence of each city in the retail environment.
Browsing Heinemann Duty Free on our departure from Hamburg, the local in-store touches, such as the huge lifesaving belts reflecting the city’s maritime heritage, were myriad. And they are repeated across its locations – Copenhagen’s wall-to-floor Danish beech trees, and Budapest’s glass bulb interpretation of the city’s thermal springs, being just two further examples.
These are elements Spanger speaks passionately about throughout our discussion, alongside a commitment to digital innovation. Responding to the needs of today’s connected travellers is at the heart of the Gebr. Heinemann strategy going forward. “There is no alternative to going digital,” Spanger asserts. “Gebr. Heinemann wants to impress its customers with the best multi-channel offer. 42% sales growth for the Home Delivery service launched in 2014 shows that the company is on the right course with its digital strategy.”
In every aspect of the business, the Gebr. Heinemann approach is a very personal one – the backbone of the family company – and it applies these values in its approach to customer engagement. “We believe this is very important, and we are communicating much more with our customers than ever before,” Spanger notes.
The multi-channel approach incorporates the Heinemann & Me customer incentive scheme, home delivery, pre-order and social media services, alongside traditional retail outlets. 400,000 members have signed-up for Heinemann & Me, which customers can currently take advantage of at 19 airports in four countries. Spanger explains that the scheme gives Gebr. Heinemann a wealth of knowledge about its customers, enabling it to effectively target campaigns and products. “We will develop Heinemann & Me to maybe include Gold and Platinum cards, and to include particular products that are only available to members of the programme, so it’s an exciting and ongoing process,” he adds.
Meanwhile, the Heinemann app offers access to the online shop, a digital Heinemann & Me membership card, a product scanner and personal shopper function. Gebr. Heinemann is also reaching
out to a trend-conscious, social mediasavvy audience through Facebook, where it has 35,300 friends.
As a family-run business, Gebr. Heinemann must, more than ever in an era of consolidation, stand out in order to remain competitive. Spanger frequently uses the word efficiency throughout our
briefing, and a strong message is that Gebr. Heinemann’s competitiveness will come from retail creativity alongside the margins negotiated by the Purchasing Division, and efficient cost structures.
It will remain a financially independent, family-run business in the long-term, and Spanger is clear that Gebr. Heinemann’s continued success will be built on organic growth. “We don’t want to be the biggest, we want to be the best. That is our strategy going forward.”
Raoul Spanger, Executive Director (Retail & HR), Gebr. Heinemann, explains the new Sydney Airport retail area to Airport Business’ Ross Falconer. The 7,000sqm flagship store will fully reopen on 6 May, and Gebr. Heinemann’s retail space will total 10,000sqm.
