Business
LVMH unit to close historic Venice department store
Global Banking & Finance Review®
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MILAN (Reuters) – DFS Group, the Hong Kong-based travel retailer controlled by luxury giant LVMH, said on Friday it was shutting down its
MILAN (Reuters) – DFS Group, the Hong Kong-based travel retailer controlled by luxury giant LVMH, said on Friday it was shutting down its business in Venice’s historic Fondaco dei Tedeschi building.
DFS said it would fire over 220 employees, according to trade unions and Venice city councillor Simone Venturini.
“This difficult decision is part of a global restructuring … driven by the very challenging economic situation and outlook that DFS and the travel retail sector have been facing globally, and in particular by our Venice store’s difficult results,” the group said in a statement.
DFS told the unions it had accumulated losses of about 100 million euros ($105.36 million) in the last five years at its Venice store, due to the COVID-19 pandemic and a decline in Asian tourists, said Nicola Pegoraro from the CISL union.
The company said in its statement that it will not renew the lease at the Fondaco dei Tedeschi, a 13th century building close to the famed Rialto Bridge, when it expires in September 2025.
It added however that it planned to keep the store open during the first part of next year.
DFS, which also operates the renowned Samaritaine department store in Paris, opened its business at the Fondaco dei Tedeschi in 2016.
($1 = 0.9491 euros)
(Reporting by Elisa Anzolin, editing by Gavin Jones)
Retail trade refers to the sale of goods and services directly to consumers. It involves businesses that sell products to the public, often in small quantities.
A financial crisis is a situation in which the value of financial institutions or assets drops significantly. It can lead to widespread economic instability and loss of wealth.
Business investment involves allocating resources, usually money, into a business venture with the expectation of generating profit or achieving growth.
Employment opportunities refer to available jobs or positions within a company or industry that individuals can apply for to earn a living.
A historical building is significant due to its architectural, cultural, or historical value. It often represents a period in history and can attract tourism.
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