The shopping experience in Keflavík is characterized by a strong sense of place and a significant presence of local brands.
A first for Iceland’s travel retail market: Previously run under state ownership, the duty-free business at Keflavík is now in private hands, making Gebr. Heinemann the first private duty-free operator in the country. After the company was awarded the duty-free concession for Keflavík in November 2024, the year 2025 was marked by the takeover of operations, the launch of the new brand, and the start of the construction work for a completely new shopping experience for travelers. Gebr. Heinemann now operates the departure shop, arrival shop, and a gate shop at the country’s main airport, covering a total area of around 4,000 square meters. Keflavík Airport is mainly frequented by leisure travelers, who make up around 90 percent of passengers.
The change of operator was accompanied by the establishment of the new, specially developed ÍSLAND Duty Free brand, a wholly owned subsidiary of Gebr. Heinemann. Jens Wolf, Director Sales Nordics, comments: “With ÍSLAND Duty Free, we have created a brand that clearly conveys the Icelandic duty-free experience, which is characterized by a strong sense of place and a consistent focus on local identity.” As a result, a significant portion of the product range comes from Icelandic brands and producers. At the same time, many international brands, such as Charlotte Tilbury, are available in Iceland for the first time through the duty-free shops.
Takeover Night: A Collaboration That Makes an Impact
The new ÍSLAND Duty Free brand got off to a strong start with a takeover night in early May. Around 80 colleagues from various Heinemann locations across Europe came for the occasion. Together with 129 new team members from the previous operator Frihofnin, they worked through the night to transform the shops. In just a few hours, the team reorganized shop floors, restocked shelves, and set up new cash registers. The departure, arrival, and gate shops were thus transformed into a completely new shopping experience. The emotional highlight was a joint Viking clap, visibly marking the start of a new phase of collaboration across countries and cultures.
However, the relaunch was about more than just speed and operational excellence. From day one, the concept was designed to reflect Iceland’s values and expectations as clearly as its identity, which includes a strong commitment to corporate responsibility. Sustainability therefore plays an important role in the new retail concept. The shop standard includes energy-efficient lighting, sustainable materials, and indoor building standards in accordance with BREEAM, the leading holistic framework for assessing sustainability in the global built environment. An exclusive concept featuring 3D-printed furniture made from ocean plastic was developed for airport operator Isavia. Building on this strong sustainability foundation, Keflavík also offers Responsible Choice, Gebr. Heinemann’s curated selection of products that meet transparent, verifiable sustainability criteria.
Responsible Choice: Available in Keflavík and at All 100 % Gebr. Heinemann Locations
The concept initially covers the Beauty and Liquor & Confectionery categories and will be complemented by Fashion during the course of the year. It is based on a two-step assessment of both the supplier (e.g. EcoVadis rating, SEDEX assessment, or B Corp certification) and the product itself, using category-specific attributes such as recycled packaging, organic or vegan ingredients, refillability, the absence of critical substances, fair-trade standards, or emissions-optimized bottles. Responsible Choice helps travelers quickly identify products with added environmental and social value and supports transparent sustainability communication. At Keflavík – as well as all other 100 percent Gebr. Heinemann-operated locations – these products are clearly marked at the Point of Sale and highlighted using special ESL shelf highlighters, visual merchandising glorifiers, and QR codes that link to a detailed landing page. Saskia Möller, Director Legal, Compliance & Sustainability, says: “The rollout underscores Gebr. Heinemann’s ambition to make responsible, future-oriented consumption a tangible part of the travel retail experience.”
Logistics Are Challenging
Due to Iceland’s isolated location, logistics are particularly challenging. The partner for sea freight from Bremerhaven to Reykjavík is the Icelandic logistics service provider Eimskip. The close collaboration ensures that the ÍSLAND Duty Free shops are supplied reliably and on time – a critical success factor for operations at Keflavík International Airport.
Eimskip CEO Vilhelm Már Thorsteinsson underscores the strength of the partnership: “Reliable service is at the core of our cooperation with Gebr. Heinemann. With regular sailings from Bremerhaven, efficient customs handling, and timely and consistent delivery to the Keflavík airport warehouse, we ensure that Gebr. Heinemann can depend on steady product availability throughout the year. This connection highlights the strength of our end-to-end service – and together, we keep operations running smoothly.”
“Reliable service is at the core of our cooperation with Gebr. Heinemann.”
Icelandic airport operator Isavia has also had its expectations fulfilled. Director Commercial Thorunn Marinósdóttir is impressed by the collaboration between equals: “With Gebr. Heinemann, we have gained a partner who shares our vision of a duty-free experience that truly embodies Iceland. The strong integration of Icelandic brands with international brands, as well as the high-quality design, noticeably enhances the travel and shopping experience. At the same time, the partnership strengthens the economic foundation of our airport.”
“With Gebr. Heinemann, we have gained a partner who shares our vision of a duty-free experience that truly embodies Iceland.”
The extensive renovation work is scheduled to be completed in the summer of 2026. Jens Wolf says: “Travelers can look forward to a duty-free experience that showcases Iceland as a modern, authentic, and responsible retail destination.”