DFS Group to close store in Sydney as it exits Oceania

DFS Oceania — In Sydney, the T Galleria store on George Street will stay open until September 10. (Source: DFS Group)

By Kaycee Enerva July 10, 2025

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Travel retail group DFS will withdraw from the Oceania market, confirming the closure of all operations in Australia and New Zealand by the end of September.

The company cited “challenging economic conditions” and a broader effort to streamline global operations as reasons for the decision.

In Sydney, the T Galleria store on George Street will stay open until September 10.

Meanwhile, in New Zealand, the downtown Auckland and Queenstown T Galleria stores, along with the outlet at Auckland International Airport, will cease trading by the end of September.

“As part of an ongoing review of our global store network, DFS has made the difficult decision to close our operations in Sydney, Auckland, and Queenstown,” a DFS spokesperson said in a statement shared with TRBusiness. “This decision reflects challenging economic conditions and is aligned with DFS’ broader strategy to optimise global operations.”

DFS said it is committed to supporting affected employees during the transition.

“We are proud of our three-decade journey in Oceania and are immensely grateful to our employees for their hard work, passion, and contributions,” the spokesperson added.

The closures are the latest in a series of store shutdowns across DFS’ global network, including recent exits from Saipan and Venice. The move comes as parent company LVMH continues to restructure DFS in response to subdued global demand for luxury goods and changing consumer behaviour in China.

Last year, the retailer continued to underperform, with business activity still trailing pre-pandemic levels. LVMH’s Selective Retailing division – which includes DFS and Sephora – reported 6 per cent year-on-year growth to $32.7 billion.

While Sephora primarily drove gains, DFS still faced challenges in markets such as Hong Kong and Macao.

In response, the company has implemented structural changes aimed at improving profitability, including reallocating resources to higher-performing markets in Asia.

LVMH said the objective is to “secure long-term growth potential” through continued operational streamlining.