JAPAN. A store that DFS Group Chairman Ed Brennan described as the retailer’s finest and which company co-founder Bob Miller called the culmination of a “40-year love affair with Okinawa” was officially opened last night.
DFS Galleria Okinawa in Naha represents the pinnacle of DFS retailing standards, according to Brennan. He said the company had been working on the project since 1998, endeavouring first to obtain the necessary legislatory dispensation to allow duty free sales to domestic Japanese travellers.
As previously reported, approval giving the store duty free status was granted under a Law on Special Measures for the Promotion and Development of Okinawa. DFS has operated a highly-successful duty free operation for domestic flights at Naha International Airport since May 2002.
It was a night of elegance blended with Okinawa’s noble tradition as DFS Group celebrated the opening of its state-of-the-art new GalleriaDFS Chairman Ed Brennan and company founder
Japanese customers can shop duty free at the Galleria to a value of ¥200,000, enjoying up to -30% discounts off domestic prices.
The DFS Galleria is located adjacent to the Omoromachi monorail station, and covers about 17,000sq m of land with a total floor space of 40,000sq m. Of that, 13,000sq m is dedicated to sales space.
Crucially from a footfall perspective, the new building is not only physically connected to the monorail station but also houses the island’s only consolidated rental car facility outside the airport. Most Japanese visitors to Okinawa hire cars for their vacation – and to access their vehicles, and after drop-off, they pass through the store.
A complementary shuttle bus operates daily between eight Naha City hotels and DFS Galleria Okinawa for guests to shop and then return to their hotels.
The grand opening was held last night one floor above the store in the facility’s spectacular Food Coliseum. DFS management and staff, brand partners, local media and VIPS from both the private and public sector were on hand to watch the ceremonial cracking open of two wooden sake barrels with hammers to signify good luck.
Speaking moments before, Ed Brennan paid tribute to those who had helped bring the complex project to fruition. “The vision was to transform Okinawa’s already successful tourism business into a truly luxury retail business,” he said. “Those of us involved believed that Okinawa could generate more tourism growth if it developed luxury shopping – we humbly suggest that this Galleria will be the much-needed magnet to attract more visitors to Okinawa.”
Brennan pledged DFS Group’s commitment to becoming part of the Okinawa community. He praised the role of local and central government, particularly the Governor of Okinawa, as well as customs.
“We have 14 Gallerias,” he said. “But I can honestly say that this store is the finest in our portfolio today.”
Earlier he told The Moodie Report: “I’m very proud – tonight is a night when you see all the attention to detail and all the effort that people have put in come to fruition.”
Following Brennan onto stage, Bob Miller (who co-founded DFS in the early 1960s with Chuck Feeney and remains a major shareholder) spoke entirely in Japanese, describing a 44-year relationship with Okinawa [he set up a duty free business here back in the early 1960s, part of the DFS roots in supplying US forces abroad].
He said: “Today is a very special day for me. When I came to Okinawa for the first time it was 44 years ago. This place has much significance in the development of DFS in Asia. I have since been to Okinawa many times and each time I grow to like this place more and more. During these 44 years, thanks to all of you for your support.
“And through our steady hard work, DFS has grown to be the first of its kind. I am very proud of this record and our people.
“Today in Okinawa we have the grand opening of this Galleria. This is a testament of our commitment to Okinawa and our belief in its potential for development in the future.
“From now on in order not to disappoint your faith in us we will continue to do our very best. We hope you will continue to be doubly confident with us and I thank you most heartily. ”
Earlier he told The Moodie Report: “Yes, I’m very proud tonight. Okinawa has changed a lot since I first came here 44 years ago.”
The Moodie Report will present in-depth coverage of DFS Galleria Okinawa in coming days, including a special ‘Picture Gallery’ feature showing this remarkable store.
Comment: The Moodie Report was privileged to attend what stands as one of the great occasions in DFS Group’s history. The sight of company founder Bob Miller, now in his 70s and going strong and Chairman Ed Brennan sitting together waiting to address the audience was a deeply symbolic image of a company that still retains its roots and one that is enjoying a return to the good times.
The store itself ranks above anything this writer has seen in the travel retail industry and, as DFS executives gathered from around the world noted yesterday, sets a new internal benchmark to aim for in the company’s next big project – beginning with a major revamping of the Tumon Bay Galleria in Guam.
The seamless walkthrough store offers brands extraordinary space to shine, nowhere more so than the luxury boutique area that houses Louis Vuitton and a cluster of the world’s leading brands, including Tiffany, Montblanc, Bulgari, Cartier, Chopard, Burberry, Tods, Celine, Fendi, Salvatore Ferragamo, Dior and Prada.
Everywhere the emphasis is on a bridge and luxury offer, with the store enjoying a higher percentage of top-end business than any other DFS outlet.
Traffic levels yesterday were extraordinary, admittedly buoyed by the Louis Vuitton opening. But the day before had set an all-time trading high and many more records seem sure to be set and smashed as the store settles down and more Japanese come to learn that they can buy duty free downtown.
The new store not only sets new company and industry retail standards but is a sound strategic investment by DFS. Okinawa is already a well-established holiday destination, attracting four million mainland visitors a year. But, critically, in the event of any external crisis to impact the global travel retail business the Japanese have a traditional tendency to holiday at home.
