T Galleria by DFS, the iconic duty-free retailer in Hawaii, especially in Waikiki, has officially announced that it will close its flagship store in the center of Waikiki on January 28, 2026, and completely withdraw from the state of Hawaii. DFS expects to gradually close the Daniel K. Inouye International Airport (Honolulu Airport) store at the end of March and the Kahului Airport store on Maui at the end of August. This will mark the end of a long history of approximately 63 years of operations in Hawaii. The company opened its first duty free store in the U.S. at the Honolulu Airport in 1962, and since then it has been a staple of Hawaii’s duty free shopping experience as a high-end duty free retailer for tourists from various countries. The T Galleria in Waikiki, in particular, has been a favorite among tourists from Japan and other Asian countries for its wide range of products, from luxury brands to local products.
Fluctuations, turning points, and reopening since before and after Corona Even before the new Corona pandemic, there were changes in tourist numbers and purchasing trends; in 2019, DFS laid off 165 employees due to slowing travel demand from Asia. And the Corona disaster forced a temporary closure in March 2020. The long closure period was met with some local speculation, “Will the buildings in Waikiki, including the T Galleria, be converted into a hotel?” However, in 2022, DFS announced an 18-year lease extension at the Waikiki Galleria Tower, owned by local investment firm Black Sand Capital. The Waikiki store reopened in July 2023. Although the size of the store was reduced, the 50,000 square feet (4,600m2) of retail space was expected to help tourism recover by launching new experiences, including the largest beauty hall and collaborations with local partners, as well as adding a new café as a tenant. However, international tourism, particularly the number of visitors from Japan, did not return as expected, and furthermore, some say that the weak yen’s decline in purchasing power has cast a shadow over the recovery.
What is the background to the withdrawal and how will it affect Hawaii? In a statement, DFS thanked Hawaii for its history as “an important market in our company’s history,” but explained that “changes in the business environment have made this a difficult decision. According to local news reports, tourism and retail officials in the state of Hawaii have expressed concern about the impact of DFS’s withdrawal on employment and tax revenue, as well as the vacancy of large commercial space in the center of Waikiki. No specific numbers have been disclosed regarding the number of employees to be laid off, but it is believed to be in the hundreds.
© Source travel watch