Lifestyle bullish after 34pc jump in profit

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.

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.
Consumption remains 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.
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.

Revenue at Sogo Causeway Bay expanded 23.2 per cent last year with exceptionally high growth in the second and third quarters.

It is said that many large department stores have planned to open online stores, real store business and online store business can both boom largely.

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