Amsterdam’s Schiphol Airport Switches Retail Partner For Next Decade

A decade-long retail partnership with travel retailer Gebr.Heinemann—which helped to deliver more than €100 million (over $105 million) in concession revenue to Amsterdam’s Schiphol Airport in 2023—will end in April next year. The airport’s owner has chosen France’s Lagardère Travel Retail to run its retail operation for the next decade starting May 1, 2025.

On that date, Lagardère will take the reins of more than 20 post-security duty-free stores where most retail income is generated (see below for more details). A joint venture will be established where Lagardère Travel Retail will hold a 70% stake and Schiphol 30%. The airport says the tie-up is “a significant step in the renewal of the retail offer at the airport and improving the experience for passengers.”

The deal follows a competitive tender for the 10-year retail partnership and an “intensive” selection process. Categories covered are the core lines that travelers expect in duty-free: perfume and cosmetics, sunglasses, tobacco, liquor, and chocolate.

For its part, Heinemann says that, through its current joint venture with the airport called Schiphol Airport Retail (SAR), it will continue its operations “as usual, ensuring a smooth transition.” On social media, the Hamburg-based, family-owned company said: “Our approximately 200 employees will remain with SAR, maintaining their roles and responsibilities. This is a normal business transition.”

There is every indication that Heinemann will not give up on this valuable Dutch location, just as it did not when Avolta’s World Duty Free took away its Düsseldorf Airport concession. Heinemann returned 10 years later.

MORE FROMFORBES ADVISOR
Best High-Yield Savings Accounts Of 2024
By
Kevin Payne
Contributor
Best 5% Interest Savings Accounts of 2024
By
Cassidy Horton
Contributor

Tobias Bechinger, the retailer’s director of sales for Western Europe, said “we are stepping aside for now.” Director of business development sales Nico Reifkogel was more direct and added: “We have a strong market position within Europe and learn with every tender. We are committed to returning in 10 years to reclaim our position.”

Amsterdam looks to a retail refresh

Schiphol has been gradually revamping its retail premises and promises that its airside offer “will be fully redeveloped”—which is where Lagardère Travel Retail will come in, to essentially help execute the airport’s new retail strategy. A refresh will also give the KLM hub a boost after a difficult few years for the airport due to staff shortages and noise concerns.

Schiphol plans to spend €6 billion in the next five years to improve its facilities, Arthur Reijnhart, executive director at Schiphol’s commercial division said: “This is a very important moment. With our intensive investment program over the next few years, we aim to restore Schiphol’s magic. With Lagardère Travel Retail, we have found a partner with whom we will transform our duty-free stores. The goal is to exceed the expectations of our passengers, and we are convinced we can achieve this.”

For Lagardère, the Schiphol win is a feather in its cap and a significant boost to its European operations which are dominated by its home market of France. Dag Rasmussen, chairman and CEO of Lagardère Travel Retail said: “We are looking forward to strengthening our long-term relationship with Amsterdam Schiphol. Together, we will aim to elevate the retail experience.” Lucio Rossetto, the company's COO for Europe, also mentioned “setting new benchmarks” at the Dutch hub.

A mixed spending picture for Amsterdam

Under Heinemann’s post-Covid tenure, average spending per passenger in Schiphol’s airside retail stores had 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 hike was due to longer dwell times allowing passengers to visit stores in a more leisurely way.

The 2023 annual report of Royal Schiphol Group—the Dutch gateway’s parent company and also the 100% owner/operator of the much smaller airports of Lelystad, Rotterdam, and The Hague—shows that Amsterdam’s airside retail shops contributed over €102.1 million ($107 million) to its P&L, accounting for just over half of all concession revenue.

Within that figure, revenue derived from SAR—described as an ‘associate’ of Schiphol Group) and attributable to the parent—was €26.9 million, up strongly from 2022’s €20.6 million.

In the first half of 2024, revenue generated by Schiphol Group from concessions increased by 41% to €133 million. This was mainly driven by 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 airside 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 slipped 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.

While Heinemann does some soul searching as it reflects on what is a big retail loss—Amsterdam Schiphol, was the world’s third busiest international airport last year with almost 62 million international passengers—other tenders are coming in Europe next year. For example, one at London Luton Airport, where passengers numbers hit 16.2 million in 2023, is expected in February (where Lagardère is the incumbent), and another tender at London Gatwick is now being evaluated.