"When it comes to high-end retail, a Steve Wynnproperty has been the Holy Grail," says Frank Volk, anexecutive vice president with Robert K. Futterman &Associates LLC's local office. "There's theexpectation that the retail in the new Wynn resortwill perform well – just like the Bellagio or Mirage.I don't see any reason for them to break the mold."
Other retailers that have signed on at the Wynn LasVegas include: Jean Paul Gaultier, Oscar de la Renta,Jo Malone, Graff, Judith Leiber, Brioni and Dior. Volktells GSR that with only 75,000 sf of retail space inthe Wynn Las Vegas, space was leasing at a premium –$200 per sf to $250 per sf. "Wynn probably had thepick of the litter, hampered only by exclusives thatthe retailers might have with other landlords," hesays.
According to Volk, many casino and resort operatorshave chosen to partner with luxury retailers ratherthan just act as a landlord. "As these owners becomemore sophisticated, they have realized that non-gamingrevenue like entertainment, room and retail exceedsgaming revenue," he notes. "As a result, some of themhave chosen to pay a license fee to the brand."
Overall, luxury retailers are doing well in Las Vegasand are aggressively expanding. "Luxury in Vegas hasbeen nothing but successful," Volk says. "On thestrip, demand for luxury retail good is fairlyvoracious." In fact, many luxury retailers arecomfortable with several boutiques in Sin City. "Thereare multiple luxury brands that would like to have asecond or third location in Vegas."
Dior, for example, has boutiques in both Wynn LasVegas and the Forum Shops at Caesars Palace. "The LasVegas market has been consistently strong for Dior,"says Marla Sabo, president and COO of Christian DiorUSA. "This boutique will give us shop presence at theend of the Strip." She adds that recent research showsthat shoppers on the Las Vegas Strip tend to shopnearer to where they stay geographically.
Moreover, the Wynn Las Vegas will benefit from itsproximity to General Growth Properties' Fashion Show mall, which is located just across the street.
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