Hong Kong retailer SOGO to shut Tsim Sha Tsui store

Hong Kong's SOGO department store is set to shut its Tsim Sha Tsui branch in March and will launch another flagship store in Kai Tak soon. 

In a conversation with MARKETING-INTERACTIVE, Sogo's parent company Lifestyle International Holdings said SOGO Tsim Sha Tsui store will close down its business on 12 March due to the expiry of the lease on the shop space. Meanwhile, the company is also looking forward to the opening of another flagship store — SOGO Kai Tak Store.

"Although the border between mainland China and Hong Kong has recently been reopened to a limited extent, the mainland Chinese tourists are expected to make limited contribution to a recovery in the city’s retail sector in the short term," the company explained.

However, as the passenger and cargo traffic and the flow of capital are returning to normal, this would bode well for the local retail market. Therefore, Lifestyle International remains cautiously optimistic about the prospect of the local retail sector.

To express its gratitude to the customers, the store is offering concessions and gifts for shoppers, according to the statement. A check by MARKETING-INTERACTIVE saw on the SOGO Tsim Sha Tsui store's website that it is currently promoting a “closing super sale” event for the first three weeks of January. It also says "everything must go" in the banner. Its website and its app also announced discounts of as much as 50% on a variety of products in the beauty, fashion, bedding, health and food categories.

Launched in 2005, the Tsim Sha Tsui Japanese-style department store is generally less busy than the flagship Sogo store in Causeway Bay, but it has been a must-go tourist attraction around the Tsim Sha Tsui district, surrounded by iconic sights and malls such as The Peninsula Hong Kong, the K11 Art Mall and cultural venues.

Back in August last year, Lifestyle International Holdings was planning to privatise the company in a deal worth HK$1.88 billion. Thomas Lau Luen Hung, chairman and majority shareholder of Lifestyle, has proposed a joint announcement on his company Emerald Energy Holdings' website on 7 August 2022.

According to the proposal, Lau has offered to buy 376.8 million shares, or 25.09% of the retailer stakes he does not already own or control, at HK$5 each for a total of HK$1.88 bn. That would represent a 62.3% premium over the stock’s closing price of HK$3.08 on August 4 before trading was halted on Friday. The stock surged 45% to HK$4.47 as of 10am local time, approaching the take-private offer price. If sustained, it would be the stock’s biggest jump on record.

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