Statement from Governor Arnold Palacios on DFS’s Strategy to Streamline Global Operations

In conversations with managers at DFS on Guam and Saipan, the company is implementing a corporate strategy that addresses challenging economic situations that DFS and the travel retail sector have been facing globally. In addition to Saipan, DFS also confirmed closures in other cities, including DFS Gallerias and airport stores in other locations outside the CNMI.

While the decision to close may be part of DFS’ broader strategy to streamline global operations, there is no denying the impact here at the local level. That’s because DFS has been more than just a business that has contributed to the economic and workforce development of our islands; it has been a cornerstone of our community that’s touched the lives of generations of families here in the Commonwealth. DFS was always there to offer philanthropic support with in-kind contributions, financial donations, and community service. For many, DFS is where they got their first job, and for some, their lifetime career. For others, it’s where they shopped year-round to buy gifts for family, friends, and colleagues. And for our entire community, DFS brought world-class luxury with innovative and creative displays and spaces, exemplary customer service, and the warm Hafa Adai atmosphere we were all welcomed with.

We express our sincere gratitude to DFS owners, management, and all their employees for their long-standing contribution to our community here in Saipan. 

While we acknowledge this closure with a heavy heart, we see it as an opportunity to create new avenues of economic growth. We are committed to working with local and international partners to attract new investments that will not only fill the void left by DFS but also bring innovative and sustainable business ventures and jobs to our islands. 

The Department of Labor is dedicated to assisting workers affected by the business closure in line with the Workforce Innovation and Opportunity Act (WIOA). WIOA offers information on programs and services available through the CNMI’s public workforce system, including WIA, ABE, and OVR. Partner agencies, such as the Division of Employment Services, provide job bank registration (labor.cnmi.gov) and guidance on job applications. WIA also offers access to training programs, skill upgrades, reemployment services, job search assistance, and support services.

To prepare for the transition, we have also begun initial discussions with CPA to ensure the traveler experience at the Saipan International Airport remains top notch with minimal impact.  CPA will ensure the floorspace currently occupied by DFS remains accessible and inviting. 

The departure of DFS underscores the CNMI’s need for us to diversify our economy and not solely rely on one industry.  We are actively seeking partnerships that align with the vision for sustainable development. This includes improving and modernizing infrastructure, diversifying the CNMI tourism source markets, leveraging military development into other spin-off industries, expanding our digital and telecommunications services, and cultivating other sustainable industries that will bring economic growth and sustainable jobs for our people.

That is why we continue to work closely with and attract businesses and investors who share the vision for a vibrant, sustainable, and resilient CNMI. This is not just about filling a retail space but about elevating our entire island’s offering.

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