No chance of recovery for Hong Kong’s stricken retail sector this year, says operator of Sogo department stores

The ‘deeply pessimistic’ view came as Lifestyle International reported a net loss of HK$227 million for the first half, versus profit of HK$1.29 billion a year ago

The pandemic will continue to weigh on consumer sentiment and inbound tourism, says executive director of Lifestyle, which runs the Japanese-style stores in Causeway Bay and Tsim Sha Tsui

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Shoppers in protective masks cross the road in front of the Sogo department store in Causeway Bay. Photo: Edmond So

Published: 4:06pm, 4 Aug 2020Updated: 9:44pm, 4 Aug 2020

Hong Kong’s battered retail sector has no hope of recovering in the rest of 2020, according to Lifestyle International Holdings, the operator of the city’s biggest Japanese-style department store chain.

The Covid-19 pandemic and the ensuing economic fallout will continue to weigh heavily on consumer sentiment and inbound tourism in the second half, said Lau Kam-shim, executive director of Lifestyle, which runs the Sogo stores in Causeway Bay and Tsim Sha Tsui.

“We maintain a deeply pessimistic outlook for Hong Kong’s beleaguered retail sector in the second half of the year,” said Lau.

“With Hong Kong currently experiencing the third wave of the pandemic, we can see no signs of improvement in the near term.”

The bearish view came as the company reported a net loss of HK$226.9 million (US$29.28 million) for the six months to June 30, versus a huge profit of HK$1.29 billion a year earlier.