From Tumon to Tamuning: As luxury shopping falls out of fashion, Guam eyes the 'premium outlets' model

 By Mar-Vic Cagurangan

Workers paint over the sign on what was once the DKSH headquarters in Harmon, a poignant sight signaling the end of an era for the Switzerland-based company that served the Guam and Micronesia markets, distributing Rolex and other luxury brand watches and accessories for more than 50 years.

DKSH Guam Inc. was dissolved Jan. 31 following the Dec. 31, 2025, shutdown of its Rolex Boutique at The Dusit Place. Its Tumon Sands Plaza outlet closed in 2024. Established in 1972, DKSH was a premier dealer of 15 European and American luxury brands, including Tudor, Maurice Lacroix, Tag Heuer, Seiko, Ray-Ban, Oakley and G-Shock among others. The company also shuttered The Caronel Watch Center at Dusit Place in Tumon and Time & Style at Guam Premier Outlets in Tamuning last year.

DFS Galleria, once the high-end shopping landmark in Tumon, shut its doors on March 31, capping its 55-year operation on Guam as part of a broader restructuring. The company described the move as a “difficult decision” driven by an “evolving market landscape. DFS also shut down its Saipan location in April 2025, citing challenging economic conditions and the waning demand for luxury brands.

“The closure of DFS T Galleria is the end of an era for the true luxury market on Guam,” according to an industry insider who requested anonymity. “The issue is that brands considered ‘luxury’ are not purchased uniquely by high-income customers, but by the middle class—the growing market in many countries.”

DKSH's former healdquarters in Harmon is now vacant. Photo by Mar-Vic Cagurangan

Guam was once known as Micronesia’s tax-free shopping haven, fueled by booming Japanese tourism and heavy spending. The luxury market’s slow demise began during the Covid-19 pandemic, which put global travel on pause, interrupted supply chains and diluted the shoppers’ appetite for high-end brands.

Tumon Sands Plaza was among the early casualties. Once home to 21 luxury shops during its peak, it is now almost empty. Gucci, Balenciaga, Chloé, Givenchy, Hermes, Kenzo, Lacoste, LeSportsac and Marc Jacobs—all gone.

The Louis Vuitton building attached to Tumon Sands Plaza has been sold to Raj Kumar of The Laundry Solution for $2 million. For industry observers, the deal was more than just a real estate affair; it underscored Guam's fidgeting tourism landscape.

The industry insider, who was previously associated with a luxury brand, said Guam lost a major part of its appeal when it lost the luxury market.

"Businesses will continue to open and Guam will bounce back, but not as an attractive nor competitive market,” the source said.

Regine Biscoe-Lee

The fading appetite for high-end products is not unique to Guam. DFS exited the Australian, New Zealand and Hawaiian markets last year, capping its 30-year presence in Oceania.

“So this is not something particular to Guam and Guam's tourism industry only,” said Regine Biscoe-Lee, president and CEO of the Guam Visitors Bureau.

Guam hopes to find a way to redirect the market toward its strength. 

While high-end shops are fading into history, Biscoe-Lee said retail remains part of Guam’s tourism appeal. Budget shopping at American retail chains such Ross and Macy’s continues to attract visitors.

“That's the reason why some visitors from the Philippines are super excited about coming to Guam and spending their money,” she said. “But there's still an opportunity for luxury spending or luxury shopping. There are a number of other businesses that are still here. We want to continue to support them."

Monte Mesa

GVB has reported visitor expenditures of approximately $1.1 billion in 2024, including spending on accommodations, transportation, retail, food and beverage and recreational activities.

Monte Mesa, general manager of Guam Premier Outlets in Tamuning, said Guam will do well by adopting the premium outlet model popular in Las Vegas and Hawaii. GPO houses popular brands such as Steve Madden, Tommy Hilfiger, Guess, Levis, Calvin Klein and Nike, offering popular products at budget-friendly prices through overstock, discontinued and factory-produced lines. 

Over the past decade, outlets have evolved into full-blown shopping destinations and changing post-pandemic consumer behavior and driving a fresh look at the concept.

“GPO plans to bring that outlet luxury and upscale brands concept in the near future,” Mesa said. “We just need to get our Japanese tourists back up to at least 600,000 and our Korean tourists back to at least 800,000 per year, and we can attract these outlet luxury and upscale brands to Guam.”

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In 2024, a study by Bain & Company indicated that 50 million luxury consumers “have either ditched buying designer bags, scarves, watches—or have been priced out.” The company’s January 2026 study showed that luxury spending continued to shift away from goods toward experiences.

“So that's one of the reasons why we put forward the idea of the Tumon Night Market. We also want to be able to highlight our local small businesses,” Biscoe-Lee said.

GVB launched the Tumon Night Market at Pleasure Island on Aug. 3, 2025. Initially designed as an experimental event, strong response from visitors and residents prompted GVB to make it a Sunday mainstay.

“They have an opportunity to interact with vendors and local small businesses in a very direct and real way. They get to hear a little bit about their story and make a connection there,” Biscoe-Lee said. “So I think that's something that has been missing in the past and we're really trying to highlight going forward.  “So we're always looking at ways, yes, to drive arrivals, but also to increase local participation in our industry and make sure everybody benefits from the work that we're doing.”

GVB has also launched the "Scent of Guam" campaign, designed to position the island as a wellness destination.

Mesa, who also manages Tumon Sands Plaza, said the former luxury shopping mall will be rebranded as a health and wellness spa, gym and business center by summer. “We have a new Umiya Seafood, Sushi and Grill Japanese restaurant opening in the Red Lobster space by September 2026,” he said. “Joinus Keyaki and Chili’s restaurants will continue to operate at TSP.”

Will all the alternatives make up for the void created by the departure of the luxury segment?

 “It's anybody's guess,” Biscoe-Lee said. “When things change, it's also an opportunity for us to explore other ways and other possibilities. So, it kind of remains to be seen at this point.”

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