Lithuania extends Heinemann's airport retail contract for eight more years

Lithuania has recently extended the retail agreement for its two major international airports, Vilnius and Kaunas, with existing partner Gebr. Heinemann. This extension, which lasts for nine years, was awarded by Lithuanian Airports to Travel Retail Vilnius, the German retailer's local subsidiary. To secure this contract extension, Travel Retail Vilnius has committed to enhancing its product range and providing an exceptional customer experience. The strategic vision behind this extension aligns with recent analyses of passenger travel patterns and purchasing habits across both airports, as authorities aim to boost economic growth through improved retail offerings. The initiatives set forth by the airport operator reflect Lithuania's ambition to develop its airports into significant hubs in the Eastern European air market. The airports processed approximately 4.4 million passengers at Vilnius and 1.3 million at Kaunas in 2023, with an upward trend expected in passenger volumes and overall traffic. The updates projected by Travel Retail Vilnius include enhancing retail spaces and diversifying product availability, particularly catering to niche markets such as beauty products, which are on the rise. These upgrades are planned in conjunction with the construction of a new terminal at Vilnius, which is expected to open in 2025. The Lithuanian government has identified retail as a vital component of its overall revenue strategy, anticipating non-aviation revenue to reach around €30 million ($32 million) by 2028. This increase will be fueled by a combination of rising passenger numbers and higher spending per passenger. Moreover, a new contract has been awarded to SSP for food and beverage operations at Vilnius, ensuring a significant commercial footprint and expansion across the airports, with plans to increase retail and F&B space by 40% by 2028. This focused growth strategy underscores Lithuania's commitment to transforming its airports into modern, diversified travel hubs. As the aviation sector continues to navigate changes post-pandemic, the Lithuanian approach to airport management seeks to capitalize on shifting travel dynamics and consumer preferences, thereby strengthening its position as a key player in the Baltic region. The upcoming infrastructure improvements and contracts are part of a broader master plan, set to guide Lithuanian Airports towards accommodating a larger volume of travelers while enhancing passenger experience through quality retail offerings and improved facilities. The strategic investments reflect both the immediate goal of boosting airport revenues and the long-term vision of solidifying Lithuania's status as a competitive air travel market player.