Family-owned distributor and retailer for the international travel retail market, Gebr. Heinemann recorded a 5.3% increase in turnover for the 2019 financial year, latest figures reveal, despite the collapse of the travel market.
“During our long-standing history we have seen many crises. This gives us some points of reference. But the scale of this pandemic is unprecedented. It is clear that the road to a recovery of the travel market will be very long. We are talking about years, not months,” said Max Heinemann, Chief Executive Officer at Gebr. Heinemann and representative of the fifth generation of owners, about the current situation. “However, as a family business, we think in generations, not in quarters.”
The strong performance was helped by a 7.2% rise in retail sector turnover, mainly attributable to new business at Istanbul Airport, where Gebr. Heinemann launched a center management model in April 2019.
With a 78% share of sales, business at airports was the strongest sales channel for the group.
To safeguard its business model during the re-start, a comprehensive package of measures to reduce costs and secure Gebr. Heinemann’s liquidity is currently being implemented. This includes renegotiating rents and concession fees at airports. Initial successes have already been achieved in discussions in this area. The same applies to the discussions on conditions and the agreements with suppliers.
“Even though travel will change and we will have to adapt to a different, new market, we are certain that the travel retail market will remain an important part of travel and especially of airports in the future. Our initial observations are positive: we are seeing in our re-opened shops that the few travellers also buy and we are even recording rising sales per passenger. We must therefore learn to adapt to the new market and the new customer needs early and quickly,” said CEO Max Heinemann.
