Sogo celebrates double-digit sales increase
Local shoppers and tourists drive sales up an estimated 16pc
Sogo department store in Causeway Bay is celebrating a yuletide sales increase of more than 10 per cent year on year thanks to strong consumption by local shoppers and tourists.
The festive performance underscored the sharp recovery in consumer spending, enabling retailers to count on strong sales with smaller discounts and less-frequent sales promotions, said Thomas Lau Luen-hung, managing director of Sogo owner Lifestyle International Holdings.
Lifestyle projects full-year sales at Sogo will jump 16 per cent to $3.5 billion this year.
'Sogo has been doing well at Christmas. We have drawn many local shoppers and mainland travellers,' Mr Lau said at the company's extraordinary general meeting yesterday. 'We're optimistic about the retailing market next year as strong consumer confidence will prevail.'
He added that the company's other key asset, Jiu Guang department store on prosperous Nanjing Road, Shanghai, had been performing well since it opened in July.
Lifestyle finance and account division senior manager Ricky Cheung said that as of the end of last month, Jiu Guang had generated more than 98 million yuan in sales, and would break even when sales hit 900 million yuan.
Mr Lau said the group was evaluating the possible addition of new stores in Hong Kong, Macau and the mainland, with a decision due in the middle of next year.
'From time to time, we have received enquiries on opening a Sogo elsewhere, but we won't make a decision until the middle of next year at the latest,' he said. 'Macau is booming, and we don't rule out that it could be our next destination.'
Lifestyle's expansion plans are backed by $1.83 billion in cash, largely proceeds from its listing in April.