In the last year, Sogo department stores in Hong Kong operated by the Lifestyle group saw an increase in sales of 16% to HK$4.36bn. There was a drop in profit due, according to the company, to the comparison with 2017 when it received a one-off gain from the sale of its majority stake in its subsidiary. The Sogo flagship on Causeway Bay increased sales by 10.5%, and the Tsim Sha Tsui store experienced a 30% lift, thanks to mainland tourist customers. Management predicts this year will be challenging for retail as declining wage growth and weakening asset values may dent consumer sentiment.