Recently, DFS Group, the Hong Kong-based travel retailer majority-owned by LVMH Moët Hennessy Louis Vuitton, has announced the closure of its Fondaco dei Tedeschi store in Venice, marking a significant shift in its European operations. It opened in 2016 as the company’s first European location. This iconic site, overlooking the Rialto Bridge on the Grand Canal, is set to cease operations by September 2025, as DFS chooses not to renew its lease.
The decision, part of a broader global restructuring, reflects challenging conditions in the luxury and travel retail sectors. A combination of sluggish post-pandemic tourism, particularly from Chinese travelers now favoring Japan and the Asia-Pacific region, and a strong euro dissuading Japanese spending in Italy, has led to “very difficult” financial results for the Venice store.
Spanning 75,600 square feet, the Fondaco dei Tedeschi store offers luxury brands such as Gucci, Bulgari, and Cartier. The store also attracted many luxury beauty brands like Biotherm, Estée Lauder, Diptyque, etc. However, despite its prime location and unique aesthetic, the store’s performance has not met expectations.
DFS has committed to supporting the 226 employees impacted by the closure, working closely with unions and authorities to minimize social impact. The company plans to keep the store open during part of the first half of 2025 as it navigates this transitional period.
