China Tourism Group (CTG) Duty Free and DFS have announced an acquisition agreement for DFS’s Greater China retail operations, with DFS noting that the transaction covers Hong Kong and Macau and that the City of Dreams retail store in Macau will continue operations until its lease expires in May 2026.
As reported, the parent company of China Travel Group’s tourism retail business group, through its subsidiary CTG Duty-Free International, has entered into a framework agreement with DFS Group to acquire nine DFS retail stores in Hong Kong and Macau, along with DFS’s intangible assets in Greater China, for a total cash consideration not exceeding USD395 million, with a total enterprise value of $400 million. Following the transaction, DFS will continue to operate its luxury travel retail business in other regions globally.
Prior to the official announcement, an internal message purportedly from DFS Hong Kong and Macau employees was leaked online in simplified Chinese.
It stated that CDF would acquire the operating rights for DFS stores in Hong Kong and Macau, excluding Melco Resorts & Entertainment’s City of Dreams (COD) store, which would continue operations until its lease expires in May 2026.
The message emphasized that positions at the Hong Kong and Macau stores would remain unchanged, and affected employees would receive guidance from management and human resources regarding employment transfers.
It also noted that headquarters and departmental staff interested in joining CDF would have corresponding opportunities. Additionally, the message highlighted DFS’s commitment to assist Hong Kong and Macau colleagues during the transition, adding that the transaction is expected to close by the end of March.
CTG Duty-Free Group stated that the acquisition will further expand the company’s service network in the Guangdong–Hong Kong–Macau Greater Bay Area and strengthen its leadership role in the industry by integrating premium travel retail networks and establishing a commanding position in the regional travel retail market.
It also aims to leverage the advantages of the Hong Kong and Macau gateways to promote the global expansion of premium domestic products, create a platform for Chinese trends to go global, and establish an international business hub.
Notably, a DFS store that was once located in the M8 shopping mall on Avenida de Almeida Ribeiro withdrew operations prior to June of last year.
The store officially opened in September 2024, after which CDF took over the space, primarily selling perfumes, cosmetics, and premium toys.
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