In 2024, two leading operators of large shopping centers in Macau, casino giants Galaxy Entertainment Group Ltd and Sands China Ltd, experienced a notable decline in net revenues from their mall businesses located on the Cotai Strip. This downturn is reflective of a broader retreat in the region's retail business, as highlighted in their annual financial reports. The data reveals a challenging year for these operators as efforts to bounce back from the pre-pandemic levels continue. Mall net revenues at Galaxy Macau, Galaxy Entertainment's flagship resort in the Cotai area, were recorded at HKD348 million (US$44.8 million) for the final quarter of the year, maintaining a flat trend from the third quarter but down 4.4% compared to the same period last year.
For the entire year, Galaxy Macau's 2024 mall net revenue slightly exceeded HKD1.39 billion. This figure represents a 10.8% decrease from the HKD1.56 billion achieved in 2023. Interestingly, when measured against the HKD1.23 billion revenue from 2019—before the onset of the COVID-19 pandemic—this year’s performance signifies a substantial 13.1% increase.
Sands China's Mixed Performance and Key Contributors
Analysis of Sands China’s results, which are reported under the umbrella of their U.S. parent company Las Vegas Sands Corp, shows a similar trend. The main malls supervised by Sands China are located at major Cotai properties, including The Venetian Macao and The Londoner Macao, as well as the connected Plaza Macao and Four Seasons Macao, and The Parisian Macao. During the fourth quarter, these malls collectively generated US$136 million in net revenue—an improvement of 8.8% over the prior quarter, though a 12.8% fall year-on-year from 2023. Additionally, for the full year 2024, the malls under Sands China yielded US$492 million in net revenue, experiencing a 3.9% drop from US$512 million in 2023 and a 7% reduction from the US$529 million garnered in 2019. Particularly, revenues from The Venetian Macao contributed US$230 million, slightly increasing by 1.3% from 2023 figures, while the Plaza Macao and Four Seasons Macao combined mall reported US$158 million, showcasing a steep 15.5% annual decrease.
Market Challenges for Luxury Retail and Sector-wide Decline
Even though The Shoppes at Four Seasons maintained the highest 'tenant sales per square foot' across Sands China’s properties, with 2024 figures recorded at US$5,379, this represented a sharp 29.2% decline from US$7,594 in 2023. Despite these setbacks, The Shoppes at Four Seasons remains a hub for "over 150" luxury brands, according to Sands China’s promotional materials. Moreover, data from Macau’s Statistics and Census Service highlights a decrease in citywide per-capita visitor spending on shopping in 2024, down to MOP2,387 (US$298), reflecting a 7.3% decline from the previous year and a 1.2% drop since 2019.
Furthermore, a survey by the statistics bureau indicated that while retail sales in Macau's fourth quarter rose 11.6% sequentially to MOP18.51 billion, there was a year-on-year downturn of 8.6% for key segments like "watches, clocks and jewellery," "leather goods," and "department stores." This culminated in a total retail sales value of MOP71.99 billion for 2024, down nearly 15% from 2023, although it represented 93.3% of the figure achieved in 2019.
Source: Galaxy, Sands saw 2024 Cotai mall net revenues dip y-o-y amid citywide retail biz retreat, GGRAsia, March 12, 2025.
贴文者 Wizard
Mar 12 2025
Mar 12 2025
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