LAS VEGAS — A long winning streak could be ending for retailers here, marking a new phase in the city’s evolution.
Reduced discretionary spending — the foundation of the entertainment, gambling and shopping mecca — is causing pain from the cash registers to the casinos with no quick end in sight.
“We’ve certainly revised our sales forecast for the coming year; we don’t want to overestimate anything now,” said Robert Chavez, chief executive officer of Hermès USA, which recently opened its second Las Vegas boutique in the Encore at the Wynn Las Vegas hotel-casino.
The area’s retail vacancy and jobless rates have almost doubled in the last year, and gaming revenue, tourism and convention business are spiraling downward. In addition, Las Vegas has the nation’s highest foreclosure rate for metro areas with a population of at least 200,000, according to RealtyTrac, which compiles the listings.
Unemployment rose to 10.1 percent in February, compared with 5.5 percent in the same year-ago period, and casino magnate Steve Wynn slashed employee salaries 10 percent to 15 percent.
Major projects such as CityCenter, a joint venture of MGM Mirage and Dubai World that includes hotels, gaming and condominiums, as well as retail, are being cut back or delayed.
MGM Mirage, the largest casino owner on the famed Strip, is trying to avoid default and other casino operators, including Harrah’s Entertainment and Las Vegas Sands, are struggling to meet debt obligations. General Growth Properties Inc., which owns and manages more than 200 U.S. malls, including Las Vegas’ Fashion Show, Grand Canal Shoppes at The Venetian and The Shoppes at The Palazzo, said Monday it is continuing talks with lenders to restructure billions of dollars in debt. General Growth is seeking to sell the Las Vegas properties, but with real estate credit tight and spending weak unloading them may be a longshot.
Mall landlords are reexamining their tenant rosters to be recession-appropriate. The Forum Shops at Caesars, which has set the standard for high-end retailing in Las Vegas, is now more interested in signing a casual eatery than a fine-dining restaurant because of the strained economic climate, said Maureen Crampton, director of marketing.
“The shopper is more conservative today, definitely, and they have been for quite some time,” she said. “We have to be realistic. We can’t set our expectations so high. This is not 9/11. People after 9/11 came to get away. It didn’t hit their pocketbook.”
Welcome to the Las Vegas where cheap buffets, half-price hotel rooms, steep store discounts, budget-friendly shows and slots are among the main attractions, while luxury brands that have catered to high rollers play second banana.
In the last 15 years, Las Vegas morphed from its roots as a gambling oasis into a luxury destination with world-class shopping, spas, restaurants and other attractions. After more than a decade of riding high, the economic turmoil has stripped away some of the city’s extravagant allure.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)