Join Britta Hoffmann, Ruediger Stelkens, and Jan Richter as they reflect on the defining moments of 2024 across the categories of Beauty; Liquor, Tobacco, Confectionery; and Fashion, Accessories.
Spotlight on the Beauty category
Insights from Director Purchasing Beauty Britta Hoffmann
How was 2024 for the Beauty category?
Britta Hoffmann: The Beauty category experienced a very successful year with double-digit growth rates in both retail and distribution. Fragrances as a subcategory, which already accounts for around 70 percent of sales within Beauty, performed exceptionally well and continues to show significant growth potential. Skin Care grew even more strongly, recovering from the impact of the pandemic, but faces challenges due to the more reserved buying behavior of Asian shoppers, especially in the luxury segment. Makeup, the smallest subcategory, is also developing positively but has not yet regained its pre-pandemic market share.
In 2024, we introduced new concepts within the Beauty category. These included the expansion of beauty services and the launch of new category concepts, such as wellness and health. In addition, our Test & Learn concept at Düsseldorf Airport was successfully implemented and is set to be rolled out at other locations in 2025. We vigorously promoted the power of collaboration, intensifying our sustainability partnership with L'Oréal, expanding our cooperation with the NOBILIS GROUP, and developing three-year business road maps with long-term partners such as L'Occitane and Puig.
When examining the various channels, we consistently see the significance and potential of the Beauty category across all of them. Although the airport channel remains the largest for this category, we have notably expanded our business in the inflight and cruise channels and made substantial investments in the border shop channel.
What were the growth drivers and trends within the different subcategories?
Britta Hoffmann: Within the Fragrances subcategory, luxury niche fragrances from brands such as Creed, Maison Francis Kurkdjian, BYREDO, or Xerjoff are key growth drivers, showing strong development across all channels. Niche fragrances are only very selectively available in online and domestic markets, making them highly desirable. We have implemented niche concepts in Vienna, Istanbul, Copenhagen, and on the cruise ship AROYA, with plans to expand to Jeddah and Antalya in 2025. We also focused on value-for-money products, which were in very high demand in 2024, catering to price-sensitive travelers.
In Skin Care, self-care and well-being are major trends. Consumers are shifting their focus from aesthetic perfection to holistic well-being, valuing science-based and effective products, as well as ingredient transparency and sustainability. In addition, brands that are committed to natural and responsible beauty and also actively promote environmental protection, such as Nuxe or L'Occitane, are in demand. Medical skin care brands such as Babor and dermaceutical brands such as La Roche-Posay, which are traditionally sold in pharmacies, are also very popular. We will therefore develop new concepts for these product groups in 2025. In 2024, we have already introduced concepts for hair care products with brands such as Kérastase and Moroccanoil, as well as beauty tools, for example from Rosenthal Organics, to meet the new demand for holistic care.
In the Makeup category, brands that used extensive social media campaigns to target younger audiences, such as Benefit and Kylie Cosmetics, were particularly successful. This target group also wants to truly experience the products, so we expanded beauty services, including a well-received test run of OPI nail care services in Copenhagen.
How did the Beauty category create unforgettable moments for travelers on the shop floor?
Britta Hoffmann: Our goal is always to turn travel time into valuable time. In 2024, we launched memorable promotions that provided travelers with unforgettable experiences. One notable example is the Sol de Janeiro promotion in Istanbul, which energized the shop floor with a DJ and roller skaters. Another example is the Boss Soccer cross-category promotion during the European Championship, which captured the tournament's positive vibe that defined the summer in Europe.
Beyond promotions and activations, our product assortment is crucial for consumer satisfaction. We offer carefully selected and curated assortments, including exclusive, limited-edition, and travel-friendly products. For instance, a fragrance by Tiziana Terenzi, developed exclusively for Istanbul Airport. These unique products, along with special travel sets and brands not easily found elsewhere, distinguish us from the domestic and online markets and offer the potential to inspire consumers, including a younger demographic.
Spotlight on the Fashion, Accessories (FA) category
Insights from Director Purchasing FA Jan Richter
How was the year for FA?
Jan Richter: In 2024, we achieved double-digit sales growth for Fashion, Accessories (FA). In addition to growth at existing locations such as Istanbul, new locations made a significant contribution. Examples include the shops on board the cruise ships Icon of the Seas, Utopia of the Seas, and AROYA, the first Saudi Arabian cruise vessel in the world, all contributing to the expansion of the FA footprint within the cruise business. Additionally, at Kazakhstan's largest airport in Almaty, we opened a new Luxury Square in partnership with our joint venture partner, ATU Duty Free.
But as well as successes, the year also brought challenges. The somewhat tense economic situation in some regions of the world has led to greater price sensitivity among consumers, which has for instance resulted in slower growth for us in the luxury segment compared to previous years. Changing passenger structures and passenger volumes, as well as demanding concession models in some cases, also pose profitability challenges.
Our goal is not only to grow our top-line revenue, but also to foster a sustainable and healthy fashion business. In 2024, we have already significantly increased our efficiency through optimized stock management, and we will focus even more on the goal of profitability in 2025 and the years to come.
What trends did you see in 2024?
Jan Richter: Consumers' increased price sensitivity, combined with their desire for sustainability, is reflected in the high demand for pre-loved products. In addition to shops on cruise ships, we opened the first stand-alone pre-loved boutique at Copenhagen Airport in 2024. The sunglasses segment has thrived, with brands such as Ray-Ban performing particularly well. Seeing further potential, we opened new multi-brand sunglasses stores in Rome and Budapest.
Overall, brands that remain dynamic in an ever-changing market and develop new concepts and approaches are more successful. In the Watches and Jewelry segment, we have collaborated with suppliers to develop open furniture concepts for the commercial and premium segments.
What are the plans for 2025?
Jan Richter: In Istanbul, we have implemented various retail formats within a marketplace structure, across all segments from commercial to premium to luxury. This concept is extremely successful and serves as a blueprint for us. We will launch new luxury marketplaces in Antalya with our joint venture partner ATU Duty Free, as well as in Jeddah in Saudi Arabia. New product categories will also play an important role in 2025. For example, we see a long-term trend in smart devices and will run promotions to gauge traveler interest. We will also introduce a new electronics concept in Jeddah, planning a dedicated store for the first time.
Sustainability is integral to the FA category. In addition to expanding our pre-loved concept, we partnered with our supplier EssilorLuxottica with the common goal of improving the supply chain through a reduced carbon footprint, an expanded assortment of sustainable eyewear, and an overall more sustainable product life cycle. In 2025, we will intensify our partnership efforts based on an active collaboration with EssilorLuxottica.
Spotlight on the Liquor, Tobacco, and Confectionery (LTC) category
Insights from Director Purchasing LTC Ruediger Stelkens
How was the year for LTC?
Ruediger Stelkens: Overall, it was a positive year for us. The liquor market remains the largest category by volume globally, although its growth rate has slowed – a trend that is not limited to the travel retail sector. We saw significant growth in the Tobacco segment, particularly due to the success of our next-generation tobacco products, the opening of our stores in Jeddah, and the growth of British brands in our airports and airline business as a result of Brexit. Meanwhile, Confectionery continues to demonstrate the highest long-term growth rates within LTC, generating annual sales of approximately half a billion euros. However, historically high cocoa prices, which have nearly doubled compared to last year, present a notable challenge. We are monitoring consumer reactions and aim to offset any potential impact with travel retail exclusives and innovative promotions.
Heinemann brought some remarkable promotions to the floor in 2024. What stood out in particular?
Ruediger Stelkens: Our 2024 promotions were exceptionally creative and heavily influenced by partnerships with celebrity brands. One standout was our Wolfie's Whisky promotion with Rod Stewart. In conjunction with his Hamburg concert, we showcased signed golden LPs and exclusive memorabilia in our portion area at Hamburg Airport, which Rod Stewart shared on Instagram – garnering 1.9 million views.
Another exclusive promotion took place in Sydney and Copenhagen, where we collaborated with Penfolds and the Japanese lifestyle brand Human Made to launch One by Penfolds – a limited-edition wine and gift box designed by Human Made founder NIGO. NIGO is the Japanese streetwear designer for Kenzo, and the box is available exclusively in travel retail. In Frankfurt and Berlin, we hosted Ben Riach master distiller Dr. Rachel Barrie from Scotland, who signed her whisky bottles on-site at the Heinemann shop. This initiative was very well received by shoppers. In the tobacco segment, our exclusive Winston Turkey LEP proved to be a top seller. This cigarette, specially designed for the Turkish market, was in great demand as a gift.
Which trends and innovations have shaped the year?
Ruediger Stelkens: In the Tobacco segment, next-generation products such as vaping, e-cigarettes, and oral tobacco products stood out, achieving an impressive 60 percent growth compared to the previous year. This category is rapidly becoming a significant contributor to additional turnover as trend-conscious consumers increasingly turn to vaping. However, we expect the Tobacco category to become more tightly regulated in general. In 2024, we expanded our next-generation products concept, now operating at 35 distribution points across 11 locations. The rollout continued into the fourth quarter, with new points established in Berlin and Düsseldorf. Tequila continues to be the fastest-growing category in the global spirits market. To capitalize on this trend, we enhanced our premium offerings, including the Heinemann global exclusive Reserva de la Tequila, developed in partnership with Proximo. In Confectionery, we have prioritized premiumization as the key growth driver. Recognizing untapped potential in established categories, we expanded our premium chocolate range, adding brands such as Venchi to meet evolving consumer demands.
How have you approached the issue of sustainability?
Ruediger Stelkens: Sustainability is a core focus for us. One example is our strategic partnership with suppliers such as Diageo and Tony's Chocolonely, which aims to embed sustainable practices more deeply into the travel retail value chain. We hold quarterly meetings with partners to share insights, address challenges, and exchange best practices, particularly in areas such as waste reduction, weight optimization, and carbon footprint reduction. These topics are critical for travelers, airports, retailers, and brand owners alike. This collaboration underscores the importance of collective action in driving sustainability forward.
Looking ahead, regulatory requirements such as the EU's forthcoming deforestation regulation will demand more comprehensive documentation from retailers and suppliers. To address this, we are actively working with partners to develop sustainable concepts that comply with these new standards.
