Pacific Sogo Department Stores Co (太平洋崇光百貨), Taiwan’s second-largest department store chain, expects sales to show single-digit growth this year compared with last year, citing a possible rise in local consumer confidence stimulated by the mild global economic recovery.
However, the company maintains a cautiously optimistic view for the year, as the retail market has yet to show a significant rebound, an official said.
Pacific Sogo, which is managed by Far Eastern Group (遠東集團), set a target of NT$68 billion (US$2.3 billion) for total sales in Taiwan and China this year, up 6.92 percent from the NT$63.6 billion it posted last year, on the back of improving momentum in private consumption.
Pacific Sogo president Lee Kuang-jong (李光榮) said the company expects sales in Taiwan to reach NT$43 billion this year, up 4.88 percent from the NT$41 billion posted last year.
Lee added that the company expected retail consumption to stage a strong rebound by no earlier than the end of the first quarter, indicating that Pacific Sogo may see its revenue improve significantly from the second quarter.
As for China — where Pacific Sogo operates 11 department stores — the company aimed to generate NT$25 billion sales this year, up 10.62 percent from last year’s revenue of NT$22.6 billion, Lee added.
Pacific Sogo chairwoman Sophia Huang (黃晴雯) said the Chinese government’s 12th Five-Year Plan may benefit the retail industry in the long term if the plan succeeds in bolstering China’s middle class — the main target customers for department stores.