For the upcoming decade, Amsterdam's significant airport, Schiphol, opts to switch its retail partner.
For the upcoming decade, Amsterdam's significant airport, Schiphol, opts to switch its retail partner.
A ten-year retail collaboration with Gebr.Heinemann, which brought in over €100 million ($105 million) in revenue for Amsterdam's Schiphol Airport in 2023, is set to conclude in April of the subsequent year. The airport's proprietor has declared that France's Lagardère Travel Retail will handle the retail operations for the next decade, beginning May 1, 2025.
On that date, Lagardère will be in charge of over 20 duty-free stores positioned beyond security where the majority of retail income is generated (see below for additional information). A joint endeavor will be established, with Lagardère Travel Retail holding a 70% stake and Schiphol retaining a 30%. The airport claims that this partnership is "a substantial advancement in the retail revamp at the airport and enhancing the passenger experience."
The deal stems from a competitive bidding process for the 10-year retail partnership and an "intense" evaluation procedure. The focus areas cover crucial duty-free categories such as fragrances and cosmetics, sunglasses, tobacco, liquor, and chocolate.
In response, Heinemann has stated that through its present joint venture with the airport called Schiphol Airport Retail (SAR), it will continue its operations as normal, ensuring a seamless transition. On social media, the Hamburg-based, family-owned firm said: "Our approximately 200 employees will remain with SAR, maintaining their roles and responsibilities. This is a routine business transition."
There is every indication that Heinemann will not abandon this valuable Dutch location, much like it did not when Avolta’s World Duty Free took control of its Düsseldorf Airport concession. Heinemann reclaimed its position in Düsseldorf 10 years later.
Tobias Bechinger, the retailer’s director of sales for Western Europe, stated: "We are receding for now." Director of business development sales Nico Reifkogel was more explicit and added: "We have a strong market position within Europe and learn with every bid. We are committed to regaining our position in 10 years."
Amsterdam's retail update
Schiphol has been progressively overhauling its retail facilities and promises that its airside offer will be "completely redeveloped," at which point Lagardère Travel Retail will step in to facilitate the airport's new retail strategy. A revamp will also boost the KLM hub following a few difficult years for the airport due to staffing shortages and noise complaints.
Schiphol plans to invest €6 billion in the next five years to enhance its facilities, Arthur Reijnhart, executive director at Schiphol’s commercial division said: "This is a crucial moment. With our extensive investment plan over the next few years, we aim to restore Schiphol's enchantment. With Lagardère Travel Retail, we have found a partner with whom we will transform our duty-free stores. The goal is to satisfy the expectations of our passengers, and we are confident we can achieve this."
For Lagardère, the Schiphol victory is an achievement and a remarkable boost to its European operations which are primarily driven by its home market of France. Dag Rasmussen, chairman and CEO of Lagardère Travel Retail said: “We are eagerly looking forward to strengthening our long-term partnership with Amsterdam Schiphol. Together, we will make every effort to enhance the retail experience.” Lucio Rossetto, the company's COO for Europe, also mentioned “setting new standards” at the Dutch hub.
A mixed spending scenario for Amsterdam
Under Heinemann's post-Covid tenure, average spending per passenger in Schiphol’s duty-free retail stores increased from €12.67 to €13.06 euros last year in contrast to food and beverage (F&B) spending which fell slightly €6.17 to €6.12. The retail increase was due to longer stay times allowing passengers to shop in a more leisurely manner.
The 2023 annual report of Royal Schiphol Group—the Dutch gateway’s parent company and also the 100% owner/operator of the smaller airports of Lelystad, Rotterdam, and The Hague—shows that Amsterdam’s duty-free retail shops contributed over €102.1 million ($107 million) to its P&L, representing just over half of all concession revenue.
As part of this figure, revenue derived from SAR—described as an 'associate' of Schiphol Group) and attributable to the parent—was €26.9 million, significantly surpassing 2022’s €20.6 million.
During the first half of 2024, revenue generated by Schiphol Group from concessions increased by 41% to €133 million. This was primarily due to the acquisition of Kappé, a home-grown retailer operating beauty stores at the airport, in January 2024, and by rising passenger numbers.
However, average spending per passenger on duty-free retail fell by almost 10% from €13.56 in the first half year of 2023 to €12.23 in the first half year of 2024. Food & beverage spending also decreased by 1.3%. Both declines were due to the impact of redeveloping the airport’s Lounge 1 where more shops and F&B outlets are being added.
As Heinemann ponders over substantial setbacks, it mirrors on the significant retail loss – Amsterdam Schiphol, ranking as the third most bustling international airport globally with approximately 62 million international passengers last year. Yet, other tender opportunities crop up in Europe the following year. For instance, a prospect at London Luton Airport, boasting 16.2 million passengers in 2023, is slated for February, with Lagardère holding the current contract. Meanwhile, London Gatwick's tender is undergoing consideration.
- The Royal Schiphol Group has chosen Lagardère Travel Retail to manage the retail operations at Schiphol Airport for the next decade, starting May 1, 2025.
- Begr.Heinemann, the current retail collaborator, will continue its operations at the airport with Schiphol Airport Retail (SAR) following a seamless transition.
- Lagardère will have control over more than 20 duty-free stores located beyond security, where the majority of retail income is generated at Schiphol Airport.
- The Royal Schiphol Group claims that this partnership with Lagardère is a substantial advancement in the retail revamp at the airport and enhancing the passenger experience.