BY MAUREEN N. MARATITA
Journal Staff
DFS – a longtime fixture in Saipan – is closing its doors April 30, according to a statement sent to media Feb. 19.
DFS began business in Saipan in 1976 at the new Saipan International Airport, with a Garapan store opening in 1978, according to Journal files.
The retailer benefited, as did the Northern Mariana Islands from a boom in Japanese tourism in the following years. DFS later benefited from the flow of outbound Chinese to the NMI. The NMI is suffering from a downturn in tourism, and an exit of luxury brands regionally, to include in Guam.
Gov. Arnold I. Palacios, said on Feb 19 about the pending closure, “… the company is implementing a corporate strategy that addresses challenging economic situations that DFS and the travel retail sector have been facing globally. In addition to Saipan, DFS also confirmed closures in other cities, including DFS Gallerias and airport stores in other locations outside the CNMI.”
The governor said, “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.”
The Department of Labor in the Northern Mariana Islands “is dedicated to assisting workers affected by the business closure in line with the Workforce Innovation and Opportunity Act,” Palacios said.
“The departure of DFS underscores the CNMI’s need for us to diversify our economy and not solely rely on one industry,” he said.
The Commonwealth Ports Authority's board of directors on Sept. 29, 2023, approved a request from DFS for a five-year master concession at the Francisco C. Ada/Saipan International Airport. DFS had been in a month-to-month concession deal with CPA since 2016, according to media reports.
According to Journal files, in 2015 DFS told the Commonwealth Ports Authority it would prefer to have a master concession exclusively with Saipan, rather than operate concessions in Rota and Tinian also.
In 2013 the retailer had 200 employees in Saipan across its outlets. The Journal has reached out to DFS to confirm the number of affected employees in Saipan.
DFS has been instrumental in tourism and the business community with former longtime Saipan executives such as President Marian Aldan-Pierce and Assistant General Manager for Operations Vicente "Ben" M. Babauta taking leadership roles at community organizations. Aldan-Pierce was recognized as the 2000 Guam Business Magazine Executive of the Year and later in 2013 as a Guam Business Magazine Businesswoman of the Year Lifetime Achiever. Babauta was recognized in 2009 as the Saipan Chamber of Commerce's Businessperson of the Year, among other recognitions.
Investors are rumored to be considering the opportunity in Saipan, which is not without precedent.
Citadel Pacific Ltd. took over management of the DFS facility in Palau, now doing business as TravlR Palau Ltd., with a store now in the Palasia Hotel Palau in Koror, as well as at Palau International Airport doing business as TravlR by Foodies, the group’s convenience store brand.
DFS previously had a Koror Galleria at the Palau Pacific Resort and the Palasia.
DFS maintains a 36,000 square foot store in Tumon, though stock levels vary across brands. Since August 2023 the retailer has had opening times from various lunchtime hours to 7 p.m.
DFS opened in Guam in 1971, and the Tumon flagship store in 1994. DFS then later invested heavily in the Tumon property to the tune of $25 million, according to Journal files. DFS had been in litigation with the Guam airport since 2013 over the award of the Guam airport concession to Lotte Duty Free, with an announced settlement by the airport last year of $2.4 million by the Guam airport authority to DFS.
In 2004 DFS employed 650 staff across its Guam locations, according to Journal files. mbj – Saipan Correspondent Mark Rabago contributed to this story.