What: DFS Group is closing its Fondaco dei Tedeschi store in Venice by September 2025 due to challenging economic conditions and poor performance.

Why it is important: The closure reflects broader struggles in the luxury and travel retail sectors, particularly in Europe, as tourism patterns shift post-pandemic. This move is part of DFS Group's global restructuring, highlighting the impact of economic challenges on major luxury retailers.

DFS Group has announced the closure of its Fondaco dei Tedeschi store in Venice by September 2025, citing poor financial results and a challenging economic environment. Opened in 2016 as DFS’s first European store, the location was housed in a historic 13th-century building near the Rialto Bridge. The decision comes amid a global restructuring of DFS and follows a decline in tourist spending from key markets like China and Japan. The closure will affect 226 employees, with DFS pledging to minimise social impact during the transition. The store's closure also coincides with leadership changes at DFS, as Ed Brennan steps in as interim CEO following Benjamin Vuchot’s departure. Despite the growth of the global travel retail market, DFS has faced difficulties in Venice, exacerbated by shifts in tourist behaviour and currency fluctuations.

DFS Group to close Fondaco dei Tedeschi store in Venice