Macau’s luxury malls look to High Street as clientele changes

Macau’s retail malls, dominated by the luxury brands favored by high rolling mainland Chinese, are turning to more affordable High Street names as VIP revenue falls, but the shift is unlikely to have a major impact on operators’ profits, analysts say. Although retail revenues have moderated in Macau, the downturn has been less severe than the slump in overall gross gambling revenue, which dropped 36.2 percent in June, declining for the 13th consecutive month. In Q1, retail sales declined 10.7 percent to MOP 16.41 billion ($2 billion), according to government figures. Watches and jewellry were the hardest hit, slumping nearly 28 percent. However, Las Vegas Sands, the first of the operators in Macau to report Q2 earnings, said its Asian retail operations had shown considerable resilience, despite the slump in the luxury market. Gross revenue from tenants in the company’s retail malls on Macao’s Cotai Strip (The Venetian Macao, Four Seasons Macao and...

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