There were at least two customers at DFS Saipan when Variety visited it at around 1 p.m., Wednesday, Feb. 19, 2025.
AFTER 40 years of doing business on island, Duty Free Saipan will officially close on April 30, including its store at the Francisco C. Ada/Saipan International Airport, according to DFS Group Limited Communications Manager Josephine Chiu.
“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 on the stores’ appeal and profitability. Despite our best efforts to continue the operations, the circumstances around the current landscape have made it unsustainable to continue,” Chiu said.
“The decision is also part of DFS’s broader strategy to streamline our global operations and refocus on key, profitable markets in Asia,” she added.
DFS Saipan will remain open until Wednesday, April 30, 2025.
“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,” Chiu said.
Variety learned that DFS staffers’ employment runs until June 30. DFS Saipan has approximately 50 employees.
Chiu said, “We…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 a 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.”
She added, “Until the very last day of operations, DFS remains dedicated to providing the exceptional service, quality, and experiences that our customers in 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.”
Impact
In a statement on Wednesday, Gov. Arnold I. Palacios said that, based on “conversations with the managers of DFS on Guam and Saipan, the company is implementing a corporate strategy that addresses challenging economic situations that DFS and the travel retail sector have been facing globally.” He said DFS also “confirmed closures in other cities, including DFS Gallerias and airport stores in other locations outside the CNMI.”
He 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. 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.”
He added, “We express our sincere gratitude to DFS owners, management, and all their employees for their long-standing contribution to our community here in Saipan. While we acknowledge this closure with a heavy heart, we 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.”
Assisting workers
Palacios said the CNMI Department of Labor is “dedicated to assisting workers affected by the business closure in line with the Workforce Innovation and Opportunity Act, which offers information on programs and services available through the CNMI’s public workforce system.”
He said partner agencies, such as the Division of Employment Services, provide job bank registration (labor.cnmi.gov) and guidance on job applications. The Workforce Investment Agency also offers access to training programs, skill upgrades, reemployment services, job search assistance, and support services, he added.
To prepare for the transition, the governor said, “we have also begun initial discussions with the Commonwealth Ports Authority to ensure the traveler experience at the Saipan International Airport remains top notch with minimal impact. CPA will ensure the floorspace currently occupied by DFS remains accessible and inviting.”
Palacios said the “departure of DFS underscores the CNMI’s need for us to diversify our economy and not solely rely on one industry. We are 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.”
“That is why we continue to work closely with and attract businesses and investors who share the vision for a vibrant, sustainable, and resilient CNMI. This is not just about filling a retail space but about elevating our entire island’s offering,” he added.
Hopeful
Rep. Thomas John Manglona, the chair of the House Committee on Commerce, said DFS has been a pillar of the CNMI economy for over 40 years, creating job opportunities for the people, transforming lives, and enhancing the quality of the Commonwealth’s tourism industry.
“I want to first express my gratitude to the employees, management, and all who contributed to the legacy of DFS and the meaningful impact it has made on our community,” Manglona said.
He said that while the closure of DFS “is a difficult moment and adds to the economic challenges we currently face, I do remain hopeful about the future of our economy.”
“As we look to the future, I remain committed to working with my colleagues in the Legislature and the administration to support the affected employees and to find new opportunities to strengthen our business landscape and our tourism industry,” he added.
Resilience
Sen. Corina Magofna, who chairs the Senate Committee on Resources, Economic Development and Workforce, said that while the news is difficult “it also reinforces the urgent need to diversify and strengthen our economy.”
“We must not only acknowledge the loss but also seize this moment to innovate, attract new investments, and create sustainable job opportunities for our people. I am committed to working with the administration, business leaders, and community stakeholders to ensure that our workforce has access to job training, reemployment services, and opportunities for growth,” she said.
“The resilience of the CNMI has always been its greatest strength. As we move forward, I will continue to advocate for policies that support economic diversification, workforce development, and investments that will uplift our people and ensure a prosperous future for the Commonwealth,” she said.
“The closure of DFS in Saipan is not just a business decision; it marks the end of an era for many families who have built their careers there, for the customers who made DFS a part of their lives, and for the community that benefited from its generosity and presence,” she added.
