Opening of second store underlines faith in concessionaire model as company posts 26pc growth in interim earnings
Lifestyle International Holdings will open a second Sogo department store in Tsim Sha Tsui on September 30, taking advantage of an expected influx of tourists visiting Hong Kong Disneyland.
Managing director Thomas Lau Luen-hung expects the $100 million store to return a profit in its first year of operation.
He said Sogo was a favourite shopping draw among mainland tourists, who represent about 30 per cent of the 5.6 million visitors that Disney estimates will flood in during the first year after it throws open the gates to its resort.
'[Sogo Tsim Sha Tsui] was fully let two months ago,' he said, pointing out that mainland tourists accounted for 25 per cent of Sogo's customer base.
Tenants in Sogo Tsim Sha Tsui, which will have 150 concessionaire counters offering more than 800 brands, would receive an 'appropriate discount' on rents as it is a new store, Mr Lau said.