Marianas Visitors Authority managing director Jamika Taijeron said the demise of luxury retailers Gemkell Saipan and T Galleria is not necessarily an indictment on the Marianas as a destination, but more of a shift in consumer demand.
“That is really the reality of the situation. It's difficult to support luxury shops like that when the market doesn't support it right now,” she said after the MVA monthly meeting last Dec. 29 at the MVA office along Beach Road.
Taijeron said tourism stakeholders already saw that trend with the closure of T Galleria by DFS last April 30, and again was manifested with Gemkell Saipan announcing that it will be shuttering its luxury shops at the ARC Building along Beach Road in Garapan on Dec. 31, 2025
“It's not just our destination. T Galleria in Guam is also closing. And it could be just a shift in consumer demand. Maybe shifting away from some of the luxury goods to something else. So, you know, it's an opportunity, and it's a necessity for everyone to really identify the consumer trends and adapt accordingly,” she said.
Asked to comment about the closure of luxury shops in the CNMI, Gov. David M. Apatang said it’s the first he heard of Gemkell Saipan shutting down and attributed it to the downturn of the tourism industry.
“Maybe it's a result of the tourist industry, because they get most of their business from the tourism industry when they come here to the Commonwealth, so maybe that's part of the problem. It's very sad to see some of these businesses closing down. Hopefully, we can recover in a new year, 2026,” he said during the opening of the One-Stop Business Permitting Center on Capitol Hill.
Saipan Chamber of Commerce president Joe C. Guerrero, for his part, said the closure of yet another business in the CNMI is unfortunate.
“They have to make such tough choices in these times, but we completely understand, and we support them. I understand they are looking at other uses for the building, maybe not luxury shopping, but maybe some other activities that could fit what the tourists are looking for.”
Guerrero echoed what Taijeron said about the impending closure of Gemkell Saipan’s boutiques at the ARC Building and T Galleria last April.
“I think we need to remind ourselves, or I'd like us to be reminded, that the shift in consumer trends around the world is shifting from luxury retail, not just in the CNMI, and that's part of the reason why DFS closed. They're looking to close in Guam as well, and in other parts of the world. So, luxury retail is not in our new future.”
Instead, he said tourists are looking for other activities other than retail luxury shopping, but hopes that Tan Holdings Corp., which owns Gemkell Saipan, will set up a new business at the ARC Building.
“It's a beautiful building. I'd be ashamed for it to be put to waste, but I believe the folks behind that investment will make sure that some new activities will go into that place.”
Gemkell Saipan carried its flagship luxury boutiques, including Balenciaga, Givenchy, Chloe, and Kenzo within the ARC Building.
In a statement, Gemkell Saipan said the closure was due to the slowdown of tourists to the CNMI.
“We wish to inform the community that ARC, home to esteemed brands including Balenciaga, Givenchy, Chloe, and Kenzo, will be closing its doors on Dec. 31, 2025. This decision is driven by a decrease in tourist arrivals and a significant shift in tourist spending behavior.”
It extended its “sincere gratitude” to everyone who has supported Gemkell Saipan at the ARC Building.
“It has been an honor to showcase exceptional luxury fashion in our boutiques. As we move forward, we are committed to exploring the introduction of other lifestyle brands that will better serve the interests of both our local residents and visitors. Our goal is to enhance the retail landscape and meet the evolving needs of our valued community.”
Gemkell Saipan said it will support departing employees by connecting them with new job opportunities within the organization, should future vacancies arise, and where they are eligible.
“In addition, we have been actively working with the CNMI Department of Labor on job placement opportunities and other displacement assistance available to affected employees. We extend our sincere appreciation to the CNMI Department of Labor Secretary and her team for their guidance, collaboration, and dedicated assistance throughout this process.”
The ARC Building was inaugurated on Saipan in 2017, but the Gemkell Saipan foray to the island started a year earlier with the opening of its first boutique in August 2016 along Paseo de Marianas.
According to the Gemkell Corp. website, the ARC Building is managed by the Gemkell Group, which was founded in 2004 and acquired by Tan Holdings in 2014.
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