'End of an era': Duty Free Shop closing its Saipan store

Duty Free Saipan Ltd., which operates T Galleria in the tourist district of Garapan, will be closing shop by April 30, 2025, after nearly five decades on Saipan, according to DFS Group Limited, Commonwealth of the Northern Mariana Islands Gov. Arnold Palacios, and CNMI delegate to Congress, Kimberly King-Hinds.

“After more than 40 remarkable years in Saipan, the DFS Group has made the difficult decision to close its operations. 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,” DFS Group Limited’s marketing office said in a statement Wednesday.

DFS Group said despite their best efforts to continue the operations, the circumstances around the current landscape have made it unsustainable to continue.

The decision is also part of DFS’s broader strategy to streamline its global operations and refocus on key, profitable markets in Asia.

“DFS Saipan will remain open until April 30th, 2025, Wednesday. 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,” DFS Group said.

The CNMI governor, in a statement also on Wednesday, said while the decision to close may be part of DFS’ broader strategy to streamline global operations, “there is no denying the impact here at the local level.”

Palacios said DFS has been more than just a business that has contributed to the CNMI’s economic and workforce development.

“It has been a cornerstone of our community that’s touched the lives of generations of families here in the Commonwealth,” he said. “DFS was always there to offer philanthropic support with in-kind contributions, financial donations, and community service. For many, DFS is where they got their first job, and for some, their lifetime career,” he said.

For others, he said, 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 added.

Opened in 1976

It was about 49 years ago when DFS Saipan opened its Garapan location on July 17, 1976, the same time its Saipan International Airport shop and the Saipan Beach InterContinental Hotel (now the Crowne Plaza Resort Saipan) also opened.

“We also extend our heartfelt gratitude to the Saipan community, our customers, and partners for their trust and support over the years. Serving this community has been a privilege and an honor, and we are proud to have been part of so many celebrations, milestones, and memories in the lives of our customers, whose loyalty and support have meant more to us than words can express,” DFS Group said.

This comes about a year after another global brand, Hyatt Regency Saipan, closed its hotel amidst a continuing tourism slump.

T Galleria on Guam remains open, but its operations have shrunk in the past years, with only a seven-hour store opening daily, from 12 to 7 p.m.

Tumon Sands Plaza, which also used to be a main hub on Guam for popular luxury retailers, is all closed except for two restaurants as luxury brand retail sales continue to plummet.

‘End of an era’

King-Hinds on Monday confirmed via social media that DFS Saipan Ltd. will be closing after the company informed her of their intention to close their CNMI operations. Palacios also issued a statement.

“A few days ago, Duty Free just called and said that...they were giving notice that they were officially winding down and closing up shop,” King-Hinds said.

While DFS Saipan closing has been one of the CNMI’s worst-kept secrets for months, Marianas Visitors Authority board chair Gloria Cavanagh can’t help but still feel saddened by its departures.

“Although no one is surprised by this announcement, it does cement an end to an era. I applaud DFS for its decades of community support and significant economic contribution to our islands,” Cavanagh said. “We are losing one of the best employers on the island, an employer that was a training ground for many successful residents. The departure of DFS will undoubtedly leave a void in our community. Thank you, DFS.”

Saipan Chamber of Commerce board director Alex Sablan said it’s disheartening to see another flagship investor leave the CNMI.

“DFS has been near a 50-year institution that’s provided several generations the opportunity at gainful employment and the ability to raise and provide for many families in the CNMI,” he said. When the day comes that they do shutter their doors it’ll truly be a sad day, they not only are an excellent corporate citizen they are an anchor business that provided a dynamic shopping facility that many locals and our No. 1 industry, tourism, relies on for a true destination experience, that will no longer exist past this summer.”

Sablan said the CNMI’s dismal current tourism numbers are symptomatic of the continued impact on businesses across the CNMI and its rearing its ugly head through continued business closures.

“Several business and optional tour operators have not been able to restart or maintain operations because of our reliance on only one market which does not have the arrival numbers to sustain current operations,” Sablan said. “The entire CNMI populace is hopeful something will happen soon to increase economic activity to improve private and public sector jobs and an overall quality of life in the CNMI.”

Last month, during the Marianas Business Network meeting, the CNMI governor also alluded to DFS leaving the Northern Marianas.

“We had a conversation with DFS corporate management and we’ve made an agreement that they’re going to drive that initial news. And then we can all come together and jointly talk about it. So, I’ll give them the respect that I committed to.”

He went on to say that he talked to DFS top brass in Hong Kong via telephone, but then asked for the media not to break the news until DFS corporate comes out with the closure notice.

“I want you to please understand that we asked for it. We asked them about it and said, ‘give us the time to put things in order before we break.’ And they’re going to be the ones that break [the news].”

On Wednesday, the CNMI governor said while his administration acknowledges DFS Saipan’s closure with a heavy heart, they also see it as an opportunity to create new avenues of economic growth.

“We are committed to working with local and international partners to attract new investments that will not only fill the void left by DFS but also bring innovative and sustainable business ventures and jobs to our islands,” he said.

DFS Group said until the very last day of operations, it remains dedicated to providing the exceptional service, quality, and experiences that customers on Saipan have come to know and value.

“We will continue to foster the relationships we have built over the past four decades and ensure a seamless and respectful transition for our employees, partners, and the community,” it added.

Residents share DFS memories

Former lawmaker Luis John Castro joins the entire local community in bidding a sad goodbye to the luxury retailer.

“For many my age, DFS is iconic. I remember as a kid riding with my family and being curious of what was in there. Fast forward to high school, and I found myself working there for a time in the summer. That was the only time I remember carrying a Rolex when I was placing it in a display case. I also enjoyed shopping during those employee nights where I’d use my uncle and auntie’s discounts to purchase things for myself or for someone special because of how much money I’d save.”

Castro, who is now CNMI Youth Congress secretary/coordinator, said the closure of DFS economically and as a valued contributing member of the local community is an unfortunate chapter in the islands’ history.

“Aside from the merchandise that made us ooh and aah because of their value, we can’t deny that DFS is an important part of our community, and it’s sad to imagine Saipan without it. Along with contributing to our economy, they were an important community partner, always willing to lend a helping hand when needed. It was and continues to be an island institution for both tourists and locals alike. Si Yu’us Ma’åse yan Ghilisow for the memories DFS!”

Saipan resident Jack Muna said DFS closing down is a bad image to the islands and its tourists.

“The CNMI is the loser. Our government is not doing enough to protect businesses on the island, and that is why our people also are leaving to look for a better life somewhere. There’s nothing left here except empty hotels and empty business buildings. The economy is very bad,” he said.

Jovan Fred said her best memories of DFS are during Christmas time.

“The holiday spirit and greetings from the DFS staff gave extra holiday joy,” he said.

Even former Saipan residents chimed in on the departure of DFS.

Ricky Castro, who used to work for Traders Insurance and former president of Triathlon Association of the CNMI, said DFS left an indelible mark during his time living on the island.

“Besides buying my favorite cologne, I recall the exceptional Christmas decorations that my family regrets not having a photo taken with as a backdrop. Without a doubt, DFS is the most generous company in CNMI when it comes to sponsoring events. I have always found it easy to approach generous individuals like Marian Aldan Pierce, Ben Babauta, and Esther Ada,” he said.

Former Hafadai Beach Hotel accountant Marlon Estigoy, who used DFS in Garapan as a shortcut to walk home to his apartment at the back of Bank of Guam, said it’s sad to see the luxury retailer go.

“For 15 years, DFS has been my go-to destination for perfumes, watches, and chocolates, offering unbeatable value thanks to their friendly and helpful staff, plus tax-free shopping and a generous staff discount,” he said.