International duty-free retailer DFS is reportedly planning to withdraw from the M8 Mall on Senado Square in Macau before June this year, just six months after establishing a presence at the location, according to a local report by Allin Media.
The report, updated on Thursday, has added to concerns about Macau’s economic recovery. The ongoing downturn has not only led to a wave of closures among small- and medium-sized businesses but has also resulted in layoffs and store closures among large retail chains.
Sources cited in the report indicate that the decision is primarily due to significantly lower than expected foot traffic at M8 Mall.
It is also necessary to note that M8 Mall is located in a core touristic area in the city.
The sluggish consumer market has had a ripple effect on DFS. In June last year, the company required staff to take at least six days of unpaid leave in July and August. This was followed by layoffs in August, with DFS stating that it had to reduce its workforce by approximately 5 percent in response to the sharp downturn in Macau’s luxury retail market.
The report also suggests that the former DFS store may be taken over by China Duty Free Group (CDF), which is reportedly planning to convert the space into a retail outlet focused on perfumes, cosmetics, and high-end toys.
Official statistics reflect the broader challenges facing the industry. In February 2025, Macau’s retail sales totaled just MOP4.26 billion ($531 million) — a dramatic 28 percent drop compared to the same period last year, and a 25.2 percent decline month-on-month. All product categories recorded a downturn, with footwear, department stores, leather goods, and adult clothing experiencing declines of over 30 percent.
Additionally, the total value of electronic payment transactions in the retail sector for the first two months of 2025 fell by 18.9 percent year-on-year, reaching MOP9.28 billion ($1.16 billion). Department stores and leather goods were particularly affected, with transaction values dropping 28.1 percent and 26.8 percent respectively, suggesting a widespread tightening of consumer spending.
