Luxury travel retailer Duty Free Shop Guam, which operates T Galleria, is closing its doors on March 31, 2026, the DFS corporate office in Hong Kong confirmed with the Pacific Daily News on Tuesday.
DFS Guam has been on the island since 1971.
Its closure during its nearly 55-year mark in March would be the end of an era of luxury shopping for Guam, whose tourism recovery from the pandemic has been among the slowest in the world. The weak yen and won against the American dollar has made matters worse for the tourism island.
The closure of the Guam store aligns with DFS’s “broader global strategy to streamline operations” in response to an evolving market landscape, according to the Hong Kong office.
Opened in 1994, T Galleria has done business on the Tumon Strip for 31 years as the duty-free luxury outlet for DFS Guam, which opened in 1971.
DFS, which was founded in Hong Kong in 1960, pioneered the concept of tax-free shopping.
On Guam, the DFS closure will occur in phases.
Each retail partner in T Galleria will be “gradually winding down” starting on Dec. 31.
“During this transition, our utmost priority is to support our dedicated team. Their unwavering commitment, hard work, and passion have been integral to our success over the decades. We are immensely grateful for their invaluable contributions,” DFS told the PDN.
DFS Guam currently has over 100 employees and additional retail workers under its partnering companies, general manager Gina Artero said.
Support services will be provided during the transition for staff and partners, she said.
Artero also told the PDN that further business closures are likely with today’s tourist arrivals and currency exchange rates.
She said the current speed of tourism recovery has significantly impacted all businesses.
“With the offering of luxury brands almost depleted, it may impact the overall appeal of (Guam),” Artero told the PDN. “It’s quite sad for the economy, (especially) since other companies—Rolex, Caronel, Hard Rock Cafe—recently closed as well.”
Tourists weigh in
Japanese visitors Tamaki Domyo, 26, and Kazuya Hosokawa, 45, said luxury brand stores are attractive features when traveling abroad.
“The price of brand-name products is not much different from the price you buy in Japan. However, when traveling, looking for brand-name products in a high-end store can give you a special experience that will lead to a special feeling,” Hosokawa said.
This was Hosokawa’s third time on Guam. He said the exchange rate has a considerable impact on tourism experiences.
Despite several options near the airport and hotels, visitors are less likely to splurge due to the currency exchange rate.
Domyo said it’s attractive to buy items at a good price “in terms of taxes” inside T Galleria, but the exchange rate discouraged her.
“You can receive quite good services in Japan, so I feel that it doesn’t make much sense if the rate is not good,” Domyo said.
However, Domyo said Guam made a very good impression on her first visit.
She said the travel time by plane is not too long, and the tourist attractions are compactly organized. Hosokawa said as much about the accessibility of stores.
“It’s very easy to spend [and] choose because there are also good, branded products,” Hosokawa added.
Guam is just the latest in a string of closures of DFS retail stores worldwide. On April 30 this year, DFS Saipan Ltd., which operated T Galleria in Garapan, closed shop.
DFS also closed stores in Australia and New Zealand in September.
Another luxury shopping destination on Guam, Tumon Sands Plaza, also now sits nearly empty of high-end brand shops that once attracted tourists to its massive building.
