Hong Kong’s Sogo department store is to close.
Property developer New World Development has terminated the lease of the store in Tsim Sha Tsui effective February 15, 2014.
The 115,000 sqft store opened in 2005 with a 15 year lease. But difficulty in attracting shoppers has been its drawback, together with its underground location.
New World Development now plans to redevelop the space.
According to CBRE’s retail services senior director Joe Lin, the redevelopment is aimed at creating synergy with New World Centre, located near Sogo, which is being developed as a 63-storey mixed-use complex comprising shopping mall, hotel and offices.
“Currently, the underground shopping centre (Sogo) is isolated from the other projects. It also relies on tour buses to bring tourists and hasn’t attracted many local shoppers,” Lin said.
“I think the developer will try to redevelop New World Centre and the underground shopping centre into a large commercial project similar to Harbour City in the district. They will target local shoppers and tourists at the same time.”
GB
