However, the public image of the Far Eastern brand is not as high-end as that of Sogo, said Chiou Jyh-shen (邱志聖), an international business professor at National Chengchi University, adding that this may be why Far Eastern would not let go of the money-making Sogo.
“The drama will drag on,” said Chiou by telephone, referring to the ensuing lawsuits between Far Eastern and Pacific Construction, accusing each other of forgery and breach of trust since 2002.
Pacific Construction, a construction business that has suffered under a sagging economy, may consider taking control of Sogo as a viable business strategy, he said.
Pacific Construction saw its sales decline 6.7 percent to NT$2.2 billion last year.
“As long as the service standard and employee morale at Sogo are not affected, the public will still shop at the department stores,” Chiou said. “The public appeared undeterred by the management fight judging from the past few years’ experience.”
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