CHINA. DFS is continuing to assess the future of its non-China operations, following the agreement announced this week for the luxury travel retailer to sell its Hong Kong and Macau operations and intangible assets in Greater China to China Tourism Group Duty Free (CTG Duty-Free).
Commenting on its Japanese operations (including the Okinawa off-shore duty-free Galleria and related airport business) and San Franciso and Los Angeles international airport operations, the company told The Moodie Davitt Report: “DFS will continue to operate our locations outside Hong Kong and Macau.
“The strategic review of our store portfolio is ongoing. There are no changes to announce for the operations of our remaining business.”
The exclusion from that statement is Yalong Bay on Hainan island, where DFS and Shenya Group signed an agreement in April 2024 to develop a 28,000sq m seven-star luxury retail and entertainment destination.
DFS withdrew from that project late last year.
Explaining that decision, DFS said in a statement: “DFS has been reassessing our plans for the Yalong Bay project. With this latest transaction to sell our Hong Kong and Macau business to CDF, we can confirm DFS will not be proceeding with the Yalong Bay project. We thank Shenya for their collaborative partnership.”
Commenting on the future of store staff and corporate employees, DFS told The Moodie Davitt Report, “Hong Kong store employees will be offered employment with CDF. Macau employees will continue to be employed by the local entity, with the holding company being changed from DFS to CDF.
“There are no layoffs planned in conjunction with this transaction.” ✈
