Spending at Cotai’s major malls picked up in the third quarter, with Galaxy Entertainment Group and Sands China both clocking sequential revenue growth. While increases in rent revenue helped, the rebound also reflects stronger consumer demand and renewed interest in luxury goods – particularly from mainland Chinese shoppers, according to casino news outlet GGR Asia.
Galaxy Macau’s mall net revenue rose to HK$340 million (US$43.7 million) in the third quarter, GGR Asia said, up 3.7 percent from the previous quarter though down 2 percent from the same period last year. Year-to-date revenue for the first nine months reached HK$1 billion – a year-on-year decline of 3.9 percent, but significantly narrower than last year’s 12.7 percent plummet.
Sands China’s Cotai malls, which are spread over the Venetian, the Londoner, the Parisian, the Plaza and Four Seasons, collectively reported US$130 million in third-quarter revenue, GGR Asia says, up around 4 percent both sequentially and year-on-year. For the first nine months, total mall revenue reached US$379 million, a 6.5 percent increase from the previous year.
[See more: Mainland Chinese are behind a surge in Hong Kong’s ultra-luxury property market]
Both operators added new offerings to their malls, including relaunched luxury outlets and additional retail brands, boosting tenant occupancy and shopper engagement.
The malls’ improved performance has coincided with a broader uptick in Macao’s retail sector. Reportable retail sales across the city reached 16.96 billion patacas (US$2.11 billion) in the third quarter, up nearly 6 percent from the previous quarter and up 2.2 percent year-on-year. The rise followed six consecutive quarters of decline.
According to Macquarie Capital analysts, Greater China’s luxury market reached a “significant inflection point” in the third quarter and was finally showing signs of recovery following its 2024 contraction – its first in 15 years.
“Luxury groups are strategically recalibrating their retail footprint, prioritising efficiency, higher sales density, and enhanced customer experiences over network expansion and aggressive price increases to drive business growth,” they noted in a late November memo.
