By Pacific Island Times News Staff
Saipan— Against the backdrop of a stagnant tourism market, DFS Galleria
will shutter its Saipan stores on May 1, capping its more than four decades of operations in the Northern Marianas.
“This closure is the result of challenging economic conditions, compounded by the departure of luxury brands, which have significantly impacted the stores’ appeal and profitability,” said Josephine Chiu, communications manager for DFS Galleria.
DFS Galleria maintains a shop on Beach Road in Garapan and a concession outlet at the airport terminal. The shops will remain open until April 30.
“Despite our best efforts to continue the operations, the circumstances around the current landscape have made it unsustainable to continue,” the company said, announcing its “difficult decision to close its operations.”
Chiu said closing the Saipan location is also part of a broader corporate strategy to streamline its global operations and refocus on key profitable markets in Asia.
“During this transition, our utmost priority is to support our dedicated team, whose commitment has been the heart of our success. We are immensely grateful for their hard work, passion, and contributions over the years,” she said.
DFS is the second industry giant to shut down following Hyatt Regency Saipan, which closed its doors last year.
The CNMI tourism, the local economy’s main driver, has not fully recovered since the Covid-19 pandemic put world travel on pause.
“The departure of DFS underscores the need for us to diversify our economy and not solely rely on one industry,” Gov. Arnold Palacios said, stressing the corporate decision’s "impact on the local level.”
“That’s because DFS has been more than just a business that has contributed to the economic and workforce development of our islands; it has been a cornerstone of our community that’s touched the lives of generations of families here in the commonwealth,” the governor added.
Besides the revenue it brings to the government treasury, Palacios noted that DFS’ philanthropic work has benefited the community.
“For many, DFS is where they got their first job, and for some, their lifetime career,” Palacios said.
“For others, it’s where they shopped year-round to buy gifts for family, friends, and colleagues. And for our entire community, DFS brought world-class luxury with innovative and creative displays and spaces, exemplary customer service, and the warm Hafa Adai atmosphere we were all welcomed with.”
Palacios said the government is now “actively seeking partnerships that align with the vision for sustainable development.”
“This includes improving and modernizing infrastructure, diversifying the CNMI tourism source markets, leveraging military development into other spin-off industries, expanding our digital and telecommunications services, and cultivating other sustainable industries that will bring economic growth and sustainable jobs for our people,” he added.
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