As China’s currency depreciates, the narrowing price gap is keeping mainland luxury shoppers at home, further contributing to Macau’s retail slump.
Some brands in China are expecting this year to return to the figures of their sales peak in 2012, says partner Bruno Lannes of consulting firm Bain. He says luxury sales in the mainland have risen an estimated 4 per cent after three years of decline.
According to the latest data from the Macau Statistics and Census Services (DSEC), retail sales of watches, clocks and jewellery have fallen 21.2 per cent year-on-year, with the overall volume of retail sales dropping 5.9 per cent in the third quarter.
More than 45 per cent of retailers interviewed by DSEC expect their sales volume to decrease for the present quarter. Meanwhile, visitor numbers from the mainland edged up 0.4 per cent year-on-year in October, but have fallen by the same amount over the first 10 months of this year.