ITALY. DFS Group is to cease trading at its upscale Fondaco dei Tedeschi store in Venice and not to renew the lease that ends by September 2025.
DFS inaugurated the luxury store on 28 September 2016, transforming the 800-year-old Fondaco dei Tedeschi into an extraordinary fusion of commerce and culture. However, a combination of adverse global retail trading conditions and a particular downturn in spending by Chinese travellers has hit the business hard.
In a statement the company said: “This difficult decision is part of a global restructuring currently undertaken by DFS, which is driven by the very challenging economic situation and outlook that DFS and the travel retail sector have been facing globally and in particular our Venice store’s difficult results.
“We will work to keep the Fondaco dei Tedeschi open during part of the first semester of 2025 and then it will be closed for the last months of the lease, dedicated to dismantling works.
“In this transition phase, our primary goal is to minimise the social impact for our dedicated team. We are committed to keep our employees informed throughout the process, working closely with the unions and with the relevant authorities.”
The news is not unexpected given DFS’s triple-pronged restructuring, reinvention and revival plan revealed by The Moodie Davitt Report earlier this week in an exclusive interview with Chairman and CEO Ed Brennan.
That plan is anchored by a laser focus on DFS’ Asia heartland and the need to address an increasingly troubled retail climate.
The retailer’s response involves a combination of streamlining operations and costs on the one hand while reengineering its strategy, zeroing in on profitable locations and investing in growth opportunities on the other. ✈
