As 2026 begins, the Aloha State is facing a historic contraction. The complete departure of a luxury travel retail giant marks the end of an era for Waikiki, while the potential retreat of the State last remaining department store chain threatens to hollow out the “local” malls on the Neighbor Islands.
Here is the breakdown of the retail shakeup hitting Hawaii in 2026.
The “Duty Free” Departure: DFS Leaves Hawaii
The biggest retail story of 2026 is DFS Group’s total exit.
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- The Closures: After more than 60 years in the islands, the luxury retailer is packing its bags.
- Waikiki: The flagship T Galleria by DFS on Kalakaua Avenue will permanently close…