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DFS closes shops at domestic terminal
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Posted on Apr 23 1999
Due to continuous losses in operation, DFS Saipan has closed down its shop at the airport commuter terminal, reducing further the expected revenue of the Commonwealth Ports Authority.
CPA management is now looking at ways on how to make the empty space profitable after DFS left on March 30, 1999.
DFS revenue slid down by more than 30 percent in 1998 compared to 1997 as a result of the plunge in tourism economy and gloomy consumer outlook.
To survive the effects of Asia’s economic crisis, management had to reduce the number of employees by attrition, consolidated positions, cut down on expenses to bare necessities, reduced working hours and eliminated some benefits. DFS operation worldwide has been severely affected by Asia’s financial crisis.
Although the shop’s area had expanded, management only hired 50 percent of the staff it originally planned.
Since it is heavily dependent on the Japanese market, the largest retailer to the traveling public in the Pacific Rim plunged from a $2 billion worth business to $1 billion.
DFS Saipan recently held a grand opening for its newly-built Garapan Galleria where it invested over $25 million. However, halfway through the construction of the DFS Galleria, the Asian region was thrown into economic crisis, making it difficult for management to backtrack from the project. (Lindablue F. Romero)
