VENICE — DFS Group is entering Europe, with plans to open its first upscale T Galleria store in Venice in mid-2016.
The Hong Kong-based retailer, which is majority owned by LVMH Moët Hennessy Louis Vuitton, has secured a hot property in the city, a 13th-century building called Fondaco dei Tedeschi, overlooking the Grand Canal and in a strategic location near the Rialto Bridge.
“This is a once-in-a-lifetime opportunity,” said Philippe Schaus, DFS chairman and chief executive officer, during a presentation of the project in Venice, referring to the historical meaning and expanse of the building, which is owned by the Benetton family’s holding company Edizione Srl. The facade is being conservatively restored by Rem Koolhaas and his studio OMA, while the interiors — with 86,400 square feet of selling space — will be designed by architect Jamie Fobert.
Related Galleries
“This is undoubtedly the oldest retail site in the world,” said Schaus, whose speech was followed by one by Giuseppe Barbieri, professor of arts history at the city’s Ca’ Foscari University, who illustrated the relevance of the building for Venice. The store will retain the building’s name: “Fondaco” is an Arab word, which means both warehouse for precious goods and lodging. It is the biggest building in the city after the Palazzo Ducale, but has a modern rigorous architecture unprecedented for the times, with frescoes by artists such as Tiziano and Giorgione that are now displayed in museums such as Ca’ d’Oro.
A former lodging for merchants from Germany, it represented the strength of trade between the Far East and Northern Europe through Venice. It was transformed into a custom house by Napoleon, and, more recently, housed offices for the postal service. La Rinascente and Galeries Lafayette were also eyeing the building, according to sources. The latter instead will open a 194,000-square-foot flagship in Westfield Milan, a future mall billed as Italy’s largest, at the end of 2017.
“Venice was the epicenter of trade in the world for 500 years and we are now returning it to its original destination of commerce,” said Schaus.
While the list of designer brands that will be available at the unit is still being determined, Eléonore De Boysson, executive vice president Europe and the Middle East, said that, while carrying international labels, there will be a strong focus on Italian products, including local wine, spirits and food, and in-store artisan presentations. “We also want to reestablish the Fondaco as a meeting place, a sophisticated destination for both visitors and Venetians,” she said, adding that DFS plans to partner with key local organizations to combine retail and culture. There will be an Italian café in the courtyard.
DFS plans to hire more than 300 workers for the store. The first floor will carry women’s fashion and accessories; the second, men’s fashion and accessories, watches and jewelry; the third, the group’s first shoe salon, beauty and fragrances, and the fourth will be a public space for events with a terrace and a view of the city. “This venue will also elevate Venice as a shopping destination,” said Schaus.
Noting that Venice is not fully developed in terms of retailing, the ceo said that the city “is the most iconic travel destination, a cultural center of the world,” and that it represented the perfect location for DFS as a first step in Europe. “We are looking at other [cities],” he conceded, while underscoring it was too early to discuss other possible locations on the Continent. He was confident in the outcome here. “We just started to talk to brands and the feedback was overwhelming, superpositive. Our interaction with different institutions has been very positive. This location sets a benchmark and has incredible potential. Retail doesn’t stand still; if you don’t move ahead you go back,” Schaus remarked. “Our ambition is to evolve the European department store model.”
He declined to provide investment figures.
According to the World Tourism Organization, or UNWTO, tourism receipts from travelers originating from the Asia-Pacific area, who are expected to grow in the coming years, amounted to $358 billion, or 31 percent of total market share. A study by JCDecaux said that there is a new category of travelers who consider shopping an integral part of the travel experience, as a recent survey found that 96 percent of people interviewed agreed that shopping is an important part of their trips.
A study overseen by DFS said that the number of tourists crossing international borders globally is forecast to reach 1.8 billion from more than 1 billion in 2013 and 435 million in 1990, based on UNWTO data. The number of international tourist arrivals in Europe is expected to reach 620 million in 2020 and 744 million in 2030, compared with 563 million in 2013. Europe is the most visited region in the world, representing 52 percent of global international tourist arrivals. UNWTO said that in Europe, Italy ranked fifth for international arrivals in 2013. International travelers in Europe spent $489 billion, representing 42 percent of global international tourism receipts in 2013. International travelers in Italy totaled 47.6 million last year and they spent $43.9 billion in the country.
The National Observatory on Tourism in Italy reported that more than five million international tourists arrived in Venice in 2012, up 9.8 percent from 2007. In the period 2012-13, Americans represented 18.67 percent, followed by France, with 11.93 percent, and the U.K., 9.27 percent.
DFS, together with Le Bon Marché and Sephora, is part of LVMH’s Selective Retailing division. Its first store was opened in Kai Tak airport in Hong Kong in 1961 and it has since developed a strong business in the Southeast Asia and Pacific regions. There are currently 14 T Galleria stores globally, which also sell brands outside the LVMH stable. “These are not duty free,” noted Schaus. “We offer the same conditions as any other store in Italy.”
The group carries 700 brands in 420 locations globally and employs 9,000 people. In 2013, more than 260 million travelers visited DFS stores.