The landscape of luxury travel retail in Macau, Hong Kong and Greater China is undergoing a major strategic shift with the recent news that China Tourism Group Duty Free (CTG Duty-Free) has agreed to acquire a significant portion of DFS Group’s retail operations across the region. This deal marks one of the most important moves in travel retail this year, and its effects will ripple across the luxury goods, travel and retail ecosystems.

A Landmark Transaction

In January 2026, CTG Duty-Free — the state-controlled travel retail arm of China Tourism Group — and DFS Group, the globally recognised duty-free retailer majority owned by LVMH and co-founder Robert Miller, announced a definitive agreement. Under this agreement, CTG Duty-Free will acquire nearly all of DFS’s retail stores in Hong Kong and Macau as well as a portfolio of intangible assets — including DFS brands and intellectual property — for exclusive use in Greater China.

This acquisition will be executed through CTG Duty-Free’s wholly-owned subsidiary, China Duty Free International Limited, with the transaction paid in cash and expected to close within the next couple of months. DFS will retain its global luxury travel retail operations outside Greater China.

Strategically, LVMH and the Miller Family plan to subscribe to newly issued CTG Duty-Free H-shares in Hong Kong, which strengthens financial ties and lays the groundwork for future collaborations. Additionally, the two companies have signed a Memorandum of Understanding (MoU) to explore further co-operation on retail strategy, brand promotion, cultural engagement, and customer experience across Greater China.

Why This Matters to Luxury Travel Retail

This acquisition is much more than a simple transfer of stores — it reflects broader transformations in the travel retail sector:

• Regional Repositioning: CTG Duty-Free expands its footprint in two of Asia’s most important travel and tourism hubs — Hong Kong and Macau — reinforcing its leadership in the Greater Bay Area and aligning with China’s overarching tourism and retail strategies.

• Market Confidence: The announcement triggered renewed investor confidence, with CTG-linked stocks reportedly climbing as the market priced in the potential future growth tied to an expanded travel retail network (including Greater China) and enhanced premium offerings.

• Luxury Sector Adjustments: For DFS and LVMH, the deal signals a pivot — focusing operational resources on markets where they see long-term strategic value while leveraging partnerships to maintain brand exposure in Greater China during a time of shifting consumer behaviors.

• Adaptation to Consumer Trends: Travel retail has faced pressures in recent years due to global travel slowdowns, volatile consumer sentiment in Greater China, and competition from domestic retail formats. This change could help reposition luxury duty-free experiences to better meet evolving preferences.

A Broader Luxury Retail Context

This strategic reshuffling in travel retail comes at a moment when luxury demand in Greater China — especially in categories like jewellery and accessories — is showing signs of recovery. Recent performance by leading luxury groups indicates continued interest in premium goods, particularly where travel and tourism intersect with retail touchpoints.

Meanwhile, other Chinese and Hong Kong heritage luxury and retail brands (e.g., jewellery and department stores) are also expanding globally and adapting to changing domestic market conditions, adding another layer to how luxury brands approach Asian and international consumers.

Looking Ahead

The sale of DFS’s Hong Kong and Macau business to CTG Duty-Free is a bellwether for the travel retail industry in Greater China. It highlights how legacy global players and emerging regional leaders are finding new ways to co-operate, compete, and innovate. As tourism rebounds and consumer tastes evolve, such strategic moves will likely shape the future of luxury retail experiences — both in travel settings and beyond.