Hong Kong-based duty-free retailer, DFS Group, is set to vacate Macao’s M8 shopping mall before June, according to a report published yesterday by local media outlet, Allin Media.
An official announcement has yet to be made, but if confirmed, the retail giant’s departure – rumoured for some time – would come less than a year after it took up tenancy last September, when M8 opened.
Allin Media stated that DFS’s exit was prompted by M8’s foot traffic, which was lower than originally anticipated, despite the shopping centre being located in Macao’s historic centre – one of the city’s busiest commercial areas.
Macao’s retail sector has been experiencing a significant downturn in recent years due to various factors, including reduced tourism spending and competition from nearby mainland Chinese cities, where prices are far cheaper. The intensifying Sino-US trade war looks set to worsen the problem even further.
Government data published yesterday shows that electronic retail transactions in February hit 4.26 billion patacas, dropping by 28 percent against the same period last year. When compared to January’s 5.02 billion patacas, the sales volume experienced a dip of 15.2 percent.
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An across-the-board fall was recorded for all the various types of retailers, including department stores, whose sales fell by around 36 percent year-on-year, and 14.6 percent month-on-month. Shoe stores also experienced a significant year-on-year fall of roughly 37 percent, while those in the leather product trade recorded a drop of around 35 percent.
With DFS leaving M8, Allin Media reports that China Duty Free Group (CDF) will take over the vacant spot, using it to sell perfume, cosmetics and toys.
Meanwhile, the media company reported that a large department store in Macao was also considering laying off workers this year, with the initial phase of redundancies targeting overseas workers.
Last year, DFS called for Macao staff members to voluntarily undergo unpaid leave in July and August.
Dating back to 1963, the building that now houses M8 was originally accommodation for postal service workers. The nine-storey property was completely refurbished and is now home to the luxury brand retailer the Fashion Square, as well as several restaurants.
