Luxury Shopping Rebounds at Macau's Galaxy and Sands Malls

As consumer sentiment in China sees an upswing, both Galaxy Entertainment Group Ltd and Sands China Ltd have experienced a notable uptick in the third-quarter revenue of their shopping malls located in Cotai, Macau. This improvement is closely aligned with broader economic indicators showing strengthened demand for luxury items both in Macau stores and across the Chinese mainland.

Galaxy Macau, Galaxy Entertainment's principal gaming and retail hub, noted a sequential increase in mall net revenue, reaching HKD340 million (US$43.7 million). Though this marks a 3.7% quarterly rise, it represents a modest 2% decline from the previous year. Nevertheless, over the first nine months of the year, the mall’s revenue narrowed its year-on-year decline by being down 3.9%, compared to the larger yearly fall of 12.7% observed in the same period last year.

Sands China: A Steady Course

Sands China Ltd's portfolio of Cotai malls, including flagship venues such as The Venetian Macao and The Parisian Macao, reported US$379 million in net revenue for the first nine months, reflecting a 6.5% increase from the previous year. In the recent quarter, their collective performance garnered US$130 million, displaying both a 4% improvement sequentially and year-on-year.

Notably, tenant occupancy rates across Sands China malls improved up to September 30, illustrating a rising trend in retail space engagement within their properties. Sands China's parent corporation, Las Vegas Sands Corp, credited this increase to a gain of US$22 million in revenue, of which US$15 million came from overage rent, US$4 million from base rent, and US$3 million from common area maintenance revenue.

Furthermore, both Galaxy Entertainment and Sands China enhanced their mall offerings by either revamping luxury outlets or introducing new retail brands, solidifying their commitment to adapting to consumer preferences.

Wider Economic Indicators and Luxury Demand

The upward trajectory seen in these leading malls is reflected citywide, with Macau's retail sales tally up nearly 6% from the previous quarter, totaling MOP16.96 billion (US$2.11 billion) by end of September. This figure underscores a 2.2% rise year-on-year, breaking a six-quarter decline streak. Key contributors to this recovery included sectors like cosmetics and jewellery.

Analysts at Macquarie Capital projected that Greater China is emerging from a downturn in demand for luxury goods, with positive implications for major luxury brands like LVMH and Hermès. This rebound is supported by factors such as a stock market rally, which creates a wealth effect, and a shift of overseas luxury consumption back to Chinese markets.

Analysts stated, "Luxury groups are strategically recalibrating their retail footprint," emphasizing efficiency and improved customer experiences over expanding networks or steep price hikes. This strategic alignment hopes to bolster business growth, marking a significant turning point in consumer behavior and luxury retail demand in the region.

Source: Shopping sees a comeback at Galaxy, Sands malls, as China consumer mood brightens, GGRAsia, December 9, 2025.

Posted by Wizard
Dec 09 2025