CTG Duty-Free Acquires DFS Retail Business in Greater China

China Tourism Group Duty-Free (CTG Duty-Free) has entered into an agreement to acquire the travel retail business of DFS Group in Hong Kong and Macau, along with intangible assets across Greater China. This transaction, announced on January 19, 2023, will see CTG Duty-Free take over DFS retail stores in these regions, excluding the City of Dreams store in Macau. The acquisition will be executed through CTG Duty-Free's subsidiary, China Duty Free International Limited, and will be settled in cash.

China Tourism Group to Acquire DFS’s Greater China OperationsCTG Duty-Free to acquire DFS’ Greater China retail businessLVMH sells travel retail group DFS to CTG Duty Free

The acquisition is positioned as a strategic move to enhance CTG Duty-Free's service network within the Greater Bay Area, aiming to promote "China-chic" brands globally. Luke Chang, Executive Director and President of CTG Duty-Free, emphasized the company's commitment to high-quality travel retail experiences for both domestic and international tourists, aligning with the broader goals of supporting the retail economy in Hong Kong and Macau.

CTG Duty-Free to acquire DFS’ Greater China retail businessChina Tourism Group to Acquire DFS’s Greater China OperationsLVMH sells travel retail group DFS to CTG Duty Free

In conjunction with the acquisition, LVMH and the Miller Family plan to participate in a capital increase of CTG Duty-Free by subscribing to newly issued H-shares in Hong Kong. This collaboration is expected to leverage the strengths of both parties in areas such as product sales, store establishment, and brand promotion.

CTG Duty-Free to acquire DFS’ Greater China retail business

DFS Chairman and CEO Ed Brennan remarked on the significance of the sale, stating, “DFS’ well-established presence and operational excellence in Hong Kong and Macau is an achievement we take great pride in.” He expressed confidence that the DFS shopping experience would be enhanced under CTG Duty-Free's management. Michael Schriver, President of LVMH for North Asia, noted that CTG Duty-Free is seen as the ideal partner to lead DFS into its next chapter, highlighting their expertise in travel retail.

LVMH sells travel retail group DFS to CTG Duty FreeChina Tourism Group to Acquire DFS’s Greater China OperationsCTG Duty-Free to acquire DFS’ Greater China retail business

The completion of the transaction is subject to customary closing conditions and is anticipated to finalize within approximately two months. This acquisition follows DFS's recent decision to exit the Hawaii market, marking a series of strategic closures by the company.

CTG Duty-Free to acquire DFS’ Greater China retail business

While the acquisition is largely viewed as a positive development for CTG Duty-Free, some industry observers may question the long-term implications for DFS's brand identity and operational strategies in the region. Concerns may arise regarding how the transition will affect customer experiences and brand loyalty among DFS's established clientele.

LVMH sells travel retail group DFS to CTG Duty Free

The acquisition of DFS's travel retail business by CTG Duty-Free represents a significant shift in the travel retail landscape in Greater China. It not only reinforces CTG Duty-Free's market position but also sets the stage for future collaborations aimed at enhancing the retail experience in the region. As both companies move forward, the focus will be on integrating their operations and maximizing the potential of the Chinese market.

China Tourism Group to Acquire DFS’s Greater China Operations