Lifestyle International, the operator of Hong Kong's Sogo and Shanghai's Jiuguang department stores, expects the retailing sector in Hong Kong to outpace that of the mainland this year with a strong growth in consumption sales. The largest operator of department stores in Hong Kong said yesterday net profit last year jumped 34 per cent to HK$1.89 billion. Turnover grew 18.9 per cent to HK$5.13 billion. Managing director Thomas Lau Luen-hung said the overall sales performance of the company's Hong Kong stores recorded good growth in the first two months of this year, which would be able to continue throughout the year. Lau expects consumption to remain strong so long as the employment rate is stable and the wealth effect persists. 'Our management takes a cautiously optimistic view regarding the retail markets in China and Hong Kong. We believe Hong Kong retail may once again experience slightly stronger year-on-year growth than its counterpart in China in 2012,' he said. Retail sales on the mainland grew 17 per cent last year, while those in Hong Kong jumped 24.8 per cent, the strongest in recent decades. The share price of Lifestyle International fell 0.1 per cent to close at HK$19.90 yesterday. Revenue at Sogo Causeway Bay expanded 23.2 per cent last year with exceptionally high growth in the second and third quarters. Sogo Tsim Sha Tsui recorded a 22.5 per cent rise in revenue, thanks to a surge in tourist arrivals. The two stores accounted for 73 per cent of the company's total revenue and 22 per cent of the revenue of the city's department store sector. The retailer, which is seeking expansion across the border, said business at its stores in Shanghai, Suzhou and Dalian improved last year. Shanghai Jiuguang, the biggest contributor to its mainland operations, posted a 7.8 growth in sales. Its Shenyang Jiuguang store in Liaoning province is scheduled to open next year while the construction of its second Shanghai store is expected to be completed in 2016. Lifestyle declared a final dividend of 25.7 HK cents per share, bringing the payout for the year to 44.9 HK cents per share, against 33.7 HK cents in the previous year.