Lifestyle International, which operates Sogo department stores, will be cautious in expanding as it faces tough competition from online retailers and shopping malls.
CEO and MD Thomas Lau Luen-hung said the company will focus more on solidifying its customer base.
The company has high hopes in China, believing that the government’s anti-corruption campaign’s effects are temporary.
“Both local government and central government policies are aimed at spurring consumer spending,” said CFO Terry Poon Fuk-chuen.
Lifestyle International’s first half turnover rose 7.8 per cent to HK$2.85 billion (US$367.4 million), with Hong Kong sales accounting 72.7 per cent.
