China’s economic slowdown continues to weigh on Macau’s recovery. Luxury retailer DFS Group has recently laid off approximately 80 frontline sales employees in Macau. This marks the first significant layoff action since the company established its presence in the region in 2008.
According to Allin Media, DFS Group stated that, given the rapid changes in Macau’s luxury retail market, the company made the difficult decision to reduce its workforce by 5 percent. This decision contrasts with current Macau visitor arrival numbers and gross gaming revenue (GGR).
DFS has deep engagement with Macau’s integrated resorts located in the Cotai area, offering luxury brands, beauty products, and more.
In June, DFS had already implemented an unpaid leave plan across its Macau branches, requesting that employees take at least six days of unpaid leave between July and August, a period typically considered the high season for tourism in Macau.
Meanwhile, according to Macau’s gaming regulator, during the first seven months of the year, Macau’s gross gaming revenue reached MOP132.34 billion ($16.44 billion), marking a yearly increase of 36.7 percent.
In addition, on August 24th Macau welcomed a total of 166,562 tourists, representing a 7.5 percent increase compared to the highest single-day total during the same period in 2019.
The decision to cut expenses in June by DFS follows a sharp decline in business, with revenue reportedly falling by nearly 40 percent compared to last year and pre-COVID levels. Additionally, the salaries of frontline employees have been significantly reduced by almost 50 percent, partly due to lower sales volumes of cosmetic products since the latter half of the previous year.
