DFS marks its 50th birthday in Hawaii

By Doug Newhouse |


DFS Hawaii celebrated its 50th birthday in Hawaii last night with a special event for all employees and retired staff at the Waialae Country Club.

Meetings of the luxury retailer’s Worldwide Executive Committee and Board of Directors are also currently taking place in Waikiki, as the world’s leading luxurygoods retailer also transforms its DFS Galleria Waikiki lobby into a temporary showcase for Hawaiian artists and artisans to mark the event.

DFS, which employs 770 staff and also operates eight stores at Honolulu International Airport (6 duty free/22 duty paid) and five at Kahului International Airport on Maui (duty paid) acknowledges that Hawaii has played ‘a very special role’ in the company’s history – not the least as its first experience in dealing with Japanese and other international travellers. It also has a special place in the retailer’s history since it opened its first downtown duty free store in Honolulu in 1968.

Hawaii’s exclusive duty free retailer adds that this is where the company’s largest single store is based and where DFS operates one of its largest airport concession leases. The DFS Galleria Waikiki is also the retailer’s only large store offering both duty free and duty paid shopping. The fact that its duty free concession with the State of Hawaii has been so successful over the years is evident from the $3bn-plus in concession fees DFS has paid to the State Airport System in the past.

 

DFS Hawaii operates the largest beauty department of any store in the State.

 

CHINESE WILL BE VERY BIG IN HAWAII
Commenting on customer numbers and the evolving profile of visitor nationalities, David Charles, Managing Director of the Hawaii Division said: “Most recently, we have seen a surge in the numbers and spending of customers from China. Korean and Japanese customers remain very important to us, of course.

“However, thanks in part to the APEC meeting in Hawaii and to the hard work of the travel industry, we are pleased to see Chinese customers in growing numbers and with a seemingly insatiable desire for certain high-end luxury goods.” [Of course, Charles is no stranger to Mainland Chinese customers after working very closely with them in Hong Kong prior to taking the top job in Hawaii. Charles was intensely involved in overseeing the renovations of both the Chinachem and Sun Plaza Gallerias, in addition to opening the Macau DFS Galleria-Ed].

Back in Hawaii, Charles added that while there was ‘no specific way to verify the data from other retailers’, DFS Galleria management believes that its downtown Galleria is the single largest retail door in the State – open 365 days of the year (09.00-23.00). It also has the added flexibility to be able to offer Americans/locals duty paid goods, which occupy two-thirds of all space (non-duty free levels on 1 and 2).

Turning to beauty and fashion, Charles (pictured below) said: “Few people realize that we have the largest Beauty department in the State and we are home to many brand boutiques that are only available with us, including – but not limited to – Céline, Dunhill, Loewe and Marie-Chantal.”

In addition and as part of the current celebrations, DFS Galleria Waikiki also plans to hold its second annual Art of Hawaiian Coffee event this August, in recognition of Hawaii’s unique history as a coffee producer. This event will feature growers from around the state, a historic exhibit, music, children’s activities, a barista latte art competition and a staff-built coffee mosaic.

 

GLOBAL SALES EXPECTED TO PASS $4bn
Based in Hong Kong, DFS Group Limited is undoubtedly the world’s largest luxury travel retailer with The Business estimating that global sales will exceed $4bn this year from more than 200 airport stores and 14 large Galleria outlets – most located in cosmopolitan and resort locations throughout Asia-Pacific. DFS also continues to be the number one travel retailer in the world, according to the industry’s leading major annual ranking report – The World’s Top 10 Operators – published exclusively by The Business.

Meanwhile, at 210,000sq ft and stretching over three floors, DFS Galleria Waikiki is not only the largest DFS store in the world featuring more than 140 brands, but it also offers the widest brand selection compared to any other retailer – including many exclusives, such as Céline, Dunhill, Loewe, Marie-Chantal, Anna Sui (cosmetics), Paul & Joe (cosmetics) and several popular fashion brands.

As reported before, DFS Galleria Waikiki also has the largest beauty floor in Hawaii and the retailer has become an acknowledged authority on prestige watches, offering the largest selection in Hawaii – complete with duty free pricing. The company also majors in the customer services department with more than 400 highly-trained multi-lingual sales associates speaking Japanese, Mandarin, Cantonese, Korean and other Asian languages.

In addition, DFS offers its Beauty Concierge Services, the Platinum Services Club and its trademark 100% worldwide guarantee which exchanges, repairs, or accepts returned merchandise accompanied by a receipt.

 

 

ED’S NOTE: DFS Hawaii retained its duty free contract in late 2006 as the sole bidder offering the Department of Transportation (DOT) a minimum guaranteed sum of $190m over the five-year contract period. The contract – also attached to a five-year extension – covers duty free shops at Honolulu International Airport, the DFS Galleria in Waikiki and stores on the Big Island. The DFS Galleria Waikiki still accounts for the vast majority of revenues.
Besides offering a $38m minimum annual guarantee for each of the five years, DFS also agreed to spend $1.75m on improvements to its stores at Honolulu International Airport.

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