DFS president to retire
By Andrew Gomes
Advertiser Staff Writer
Bob Coe is stepping down as president of DFS-Hawai'i, the core of a duty-free retailing empire that has been fighting for survival in Hawai'i for more than a year.
Coe, who has been with parent company DFS Group Ltd. for nearly 20 years, said through a spokesperson that he will retire at the end of the month and move to California. His replacement has not yet been named.
COE
The retail veteran has been trying to lead the company through its second major restructuring in four years and resolve nearly $30 million in back rent owed to the state Transportation Department for airport retail concession operations.
The turnaround effort has been the biggest challenge ever for DFS-Hawai'i, one of the state's largest retailers with about 1,300 employees. Formerly known as Duty Free Shoppers, the company has a 41-year history here with annual duty-free sales that have ranged from more than $400 million to less than $200 million.
Coe also was one of the chief private-sector promoters of the state's Japanese visitor market, which DFS-Hawai'i relies on for 90 percent of its duty-free business and more than 60 percent of regular retail sales.
In addition to leading operations in Hawai'i, Coe oversaw DFS businesses in Guam and Saipan, and heads worldwide marketing for DFS Group, the world's largest travel retailer with 150 stores in 16 countries, including 40 stores in Hawai'i.
Coe declined to be interviewed. But Sharon Weiner, DFS Group vice president, said Coe, 54, wanted to be closer to his family. "It was his choice," she said. "A few months ago he bought a house in Palm Springs ... he just figured at almost 55 that this was a good time to start a new life and relax a little bit."
Gilbert Kimura, director of sales for Japan Airlines in Hawai'i, said Coe's retirement plan comes as a shock. "He's too young to retire," Kimura said. "He did a terrific job.
"I was kind of surprised, but on the other hand I know they have been having a difficult time. He was facing a very difficult position with the downturn in Japanese tourism. He really tried to stem the tide of losses."
DFS-Hawai'i was among the hardest hit by the downturn, with sales that were still down 30 percent from pre-9/11 levels toward the end of last year.
Coe got his start in retailing as an executive trainee with Federated Department Stores in 1970. He subsequently worked for department store Stix Baer & Fuller and Allied Department Stores on the Mainland.
He joined DFS Group in 1984 as division president in Alaska, where he helped Anchorage International Airport generate the highest spending per departing passenger among airports worldwide.
Coe was the chief architect of diversifying DFS into non-duty-free business with entertainment-based boutique Galleria retail centers, one of which he opened two years ago in Waikiki at a cost of $65 million. He moved to oversee Guam and Saipan in 1989 and was named Hawai'i region president in March 1999.
The Ohio native plans to move from Hawai'i with his wife, Becky, to Palm Springs, Calif., where they will be closer to their son who is going to college in Southern California, Weiner said. The couple also has a daughter pregnant with triplets in Atlanta.
"He is going to focus on his family and focus on lowering his golf handicap," she said. "He's done a lot for tourism in Hawai'i. He is going to be really missed."
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
