Gebr. Heinemann has redefined retail excellence in Saudi Arabia with a nature-inspired shopping concept at Jeddah Airport that blends elements of earth, wind, water, and starry skies to create a captivating ambiance for travelers.
A landmark shopping destination has emerged at King Abdulaziz International Airport, showcasing collaboration and a shared vision. In October 2024, Gebr. Heinemann, Astra Group, and Jordanian Duty Free Shops opened the first part of a new retail space through their joint venture, JAH Arabia International Duty Free LLC. The expansive 11,500-square-meter area is being developed in phases, with 50 percent to be completed within the first quarter of 2025 and full completion expected by mid-2025. Around 450 employees will provide memorable shopping experiences across categories such as beauty, confectionery, fine food, tobacco, souvenirs, fashion, accessories, and jewelry in Terminal 1 and the North Terminal.
Jeddah, Saudi Arabia's second-largest city with a population of nearly four million, has the country's most important port on the Red Sea. The airport serves over 40 million passengers annually and consists of three terminals, including one dedicated to Hajj travelers, as Mecca is just an hour's drive away.
Regional Focus and Product Assortment
Heinemann Middle East Africa plays a key role in the selection of the assortment, with an emphasis on regional authenticity. Bernard Schlafstein, CEO of Heinemann's regional headquarters in Dubai, shares his vision for the region: “We see great potential in the Saudi market and we are highly confident that we can make a significant impact as a retailer and distributor. Therefore, we plan to expand our business in the airport channel as well as into other channels in the region.”
Currently, around 15 percent of the product assortment consists of regional specialties such as chocolate, dates, nuts, prayer rugs, shirts, and caps. The Beauty segment features international brands such as Givenchy, Bulgari, Clarins, and Rituals, focusing on rich fragrances preferred in the region. Premium brands such as Boss and Michael Kors complement the assortment, while niche brands will be highlighted and form a key pillar of the assortment. Consistent with local customs, alcohol is excluded from the range.
Architectural Experience and Design Inspiration
The architectural design transforms the airport visit into an experience by linking categories with nature: Earth symbolizes the beauty sector, water represents tobacco and confectionery, and air signifies fashion, accessories, watches, and jewelry.
Bernard Schlafstein highlights the importance of cooperation: “We quickly earned the trust of relevant authorities such as the RSAF and ZATCA, the tax and customs offices. Our collaboration with the airport operator has been open and trusting from the start. With both Astra Group and Jordanian Duty Free Shops as partners, we have many projects in the pipeline, including port and border shops.”
Cultural Understanding and Local Talent
Simon Forde, CEO of JAH Arabia International Duty Free LLC, adds: “Our understanding of Arab culture and employing Saudi talent is crucial to our success. This helps us better serve customers and build stronger relationships with the local community. By investing in local talent and respecting cultural nuances, we create a shopping experience that resonates with our customers.”
JAH Arabia International Duty Free LLC has a seven- year contract, with significant investment planned for the retail space. The airport, a hub for Saudia Airlines, grew by more than 25 percent in passenger numbers in 2024, with expansion plans targeting 80 million passengers and direct flights to 50 new international destinations. This growth reflects the increasing demand for exceptional retail offerings.
In Line with Saudi Vision 2030
Saudi Arabia's Vision 2030, which aims to diversify the economy beyond the oil industry, further highlights the market's potential. By encouraging investment in tourism and retail, Vision 2030 has opened new avenues for international partnerships.
The Jeddah Airport stores mark a significant step in Gebr. Heinemann's regional growth strategy, following the AROYA cruise ship contract. With Saudi Arabia's population of around 36 million and increasing openness to Western influences, the company is planning further duty-free collaborations at border crossings, ports, and domestic retail locations, with additional airports also under consideration.