Lifestyle Group publishes its 2020 annual report
What: the group details the impact of Covid-19 on the results
Why is it important: new SOGO department store is still due to open in 2023
Facing the unprecedented health and economic crisis, Lifestyle International has swiftly implemented critical strategic measures to mitigate the negative impact of the COVID-19 pandemic and adapt to the rapidly changing retail environment.
With a lower base of comparison in the previous period, decline of the Group’s gross sales revenue narrowed to 19.6% in the second half of the year, from a drop of 53.5% in the first half of 2020, and reported a 39.9% decline for the full year.
The Group’s turnover decreased by 43.7% over the previous year to HKD 1.993 million, as result of a significant fall in customer foot traffic at the stores stemming from the containment measures of COVID-19 pandemic.
The Group’s operating profit for the year fell 50.9% to HKD 801 million from HKD 1.632 million recorded in 2019.
Sales at the flagship SOGO Causeway Bay as a result plunged 36.2% for the full year whereas sales at SOGO Tsim Sha Tsui tumbled 57.7% from a year earlier.
“Looking ahead, management continues to hold a pessimistic outlook for Hong Kong’s retail market. With the fluctuating local pandemic situation and continued restrictions on cross-border travel, retail businesses will continue to face pressure ” Ms. Kam Shim Lau, Executive Director of Lifestyle International, said.
Despite a slight delay in construction, the Group’s Kai Tak Project is still planned to open in 2023. The construction of the twin blocks of commercial buildings will host a new SOGO department store and complementary retailing, entertainment, dining and lifestyle facilities in the new Kai Tak development area, East Kowloon.