The opulent T Fondaco dei Tedeschi store from DFS opened in 2016, marking the travel retailer’s entry into the European downtown market.

DFS Group is to end its commercial operations at the Fondaco dei Tedeschi building in Venice.

In a statement obtained by TRBusiness, the Hong Kong based travel retailer confirms that following careful consideration it has decided not to renew its lease at the historic site, which is situated on the famed Rialto Bridge crossing the Grand Canal, due to end in September 2025.

“This difficult decision is part of a global restructuring currently undertaken by DFS, which is driven by the very challenging economic situation and outlook that DFS and the travel retail sector have been facing globally and in particular our Venice store’s difficult results,” read the statement.

“We will work to keep the Fondaco dei Tedeschi open during part of the first semester of 2025 and then it will be closed for the last months of the lease, dedicated to dismantling works. In this transition phase, our primary goal is to minimise the social impact for our dedicated team. We are committed to keep our employees informed throughout the process, working closely with the unions and with the relevant authorities.”

Ed Brennan (pictured) has returned to the helm of DFS following the departure of Benjamin Vuchot.

The development is not entirely surprising given the company, which is co-owned by luxury conglomerate LVMH Moët Hennessy Louis Vuitton and co-founder Robert Miller, has struggled in recent years to recover its pre-Covid 19 metrics.

As reported in the TRBusiness Top 10 International Operators report, this is due largely to a combination of factors including stuttering traveller volumes and spending from high-value Chinese consumers.

It comes at a time of heightened investment in marketing initiatives, refurbishments and openings in key markets in anticipation of the recovery.

In the most recent financial results from parent company LVMH, it was noted that business activity at DFS in the first nine months of 2024 continued to lag behind 2019 levels, akin to H1.

However, LVMH’s Selective Retailing business – in which DFS falls under – reported 6% organic growth to €12,559 million for the period, at least in part due to the ‘remarkably’ strong performance of Sephora.

DFS Chairman and CEO Benjamin Vuchot stepped down recently and was replaced by erstwhile CEO and industry veteran Ed Brennan, effective the beginning of this month.

The opening of DFS’ store at the Fondaco in 2016 marked its European downtown debut. TRBusiness enjoyed a pre-opening guided tour of the store at the time.

DFS marked its second downtown shop opening in Europe at the refurbished La Samaritaine department store, adjacent to the Pont Neuf in Paris, which opened in 2021.

For more on DFS Group’s performance, view the TRBusiness Top 10 International Operators report by clicking here.

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