DFS moves executive office to Hong Kong

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DFS is to relocate its senior executive offices from San Francisco early next year as part of its corporate restructure.

DFS will move its senior executive offices from San Francisco to a newly created office in Hong Kong in January 2004 as part of a corporate restructure. Chairman and ceo Ed Brennan, executive vice-president and chief financial officer Steve Mangum, executive vice-president business development and general counsel Michael Zacharia, and senior vice-president finance John Wilson will all move to Hong Kong. This office will also house the business planning and analysis and treasury functions.

DFS will continue to maintain a group office in San Francisco focused primarily on merchandising. President of merchandising Michael Schriver, executive vice-president boutiques, fashion, luxury and brand development Kirk Martin and senior vice-president planning and distribution Daniel Binder will remain there as the senior management.

DFS said the move would help it pursue opportunities in those markets that would help its future growth. Brennan said: ?As the market leader in our industry, DFS is always striving to identify opportunities that will further support the growth and profitability of our company. We believe the changes we are announcing will create a business model that will allow us to aggressively pursue new business opportunities, build a stronger future for our employees, and sustain our position as the leader in travel-retail.?

Other changes include the merging of its North American division into a new US group, including its Hawaii and Mid-Pacific units. This change will align all DFS divisions into two principal groups?US and Asia.

The company also plans to relocate its distribution function from San Francisco to the US and Asia group offices. Other support functions in finance, human resources, legal, and logistics will remain in the San Francisco group office. The changes are expected to result in the elimination of a small number of positions in San Francisco. A severance package and transition support will be offered to displaced personnel, said DFS.

DFS operates more than 150 duty-free and general merchandise stores throughout Asia, the Pacific Rim and North America.