Sogo department stores’ operator, Lifestyle International, is set to close Sogo Tsim Sha Tsui this quarter, after 18 years of operations.
Local sources reported Sogo Tsim Sha Tsui will close its doors on March 12 upon the expiration of its lease. The announcement follows the Japanese-style department store’s closing clearance which will end on January 17, offering 50 per cent discounts on a selection of products, including beauty, fashion, health and food products.
Lifestyle International believes that the return of Mainland customers may not bring a significant boost to the industry in Hong Kong in the short term.
Meanwhile, the Causeway Bay branch will continue to trade and the new Sogo Kai Tak is expected to start with a soft opening by the end of this year, potentially a new retail landmark in East Kowloon. Construction commenced in 2017.
Lifestyle International’s main shareholder proposed privatisation of the company in November, acquiring about 25 per cent of its shares and the company went private on December 20.
Hong Kong’s retail sales saw a 4.2 year-on-year fall in November, registering US$3.77 billion. While tighter financial conditions will continue to have an impact on local consumption, retailers are expected to be supported going forward by the continuous easing of social distancing measures and improvements in labour market conditions.
