Luxury brands are holding back from further expanding in China after retail sales over Lunar New Year slackened.

Property analysts say the pace of luxury store openings will slow this year in mainland China, especially now that the Chinese government is banning officials from splurging on luxury goods.

“A key reason is that the anti-corruption measures in China have curtailed the use of public funds for high-priced gifts. Meanwhile, for the more aspirational and price-sensitive customer groups, where there is still spending growth driven by rising incomes, they are increasingly going to Hong Kong or other low-tax destinations to buy luxury goods,” said Steven McCord, a director of China retail research at Jones Lang LaSalle, Shanghai.

According to Paul Hart, executive director at property consultancy Knight Frank and Woods Bagot, Greater China, many retailers have missed their store opening targets last year. Among them Gucci, which planned eight new stores but opened none, Burberry which opened eight instead of 11 and Prada which planned seven but opened only four.

Meanwhile, fast fashion remains one the most active segments of the market and are increasingly forming the cornerstones of shopping malls, said Hart.