Sincere (00244):
Central Store to Close as Dept Stores Lag

One Notice:
Central Store Shuts in Early December

According to the announcement, Sincere intended to renew the Central lease but failed to reach terms with the landlord. The store will stop trading around early December so the premises can be restored and returned. The company said it will keep looking for a suitable location in Central or Sheung Wan to open a new department store, but as at the announcement date (4 October) it had not found one.

In the meantime, the group will continue running its department store at four floors of Kiu Wah Centre on Nathan Road in Mong Kok, along with its online store. Beyond department stores, it also operates outdoor sportswear shops in Tin Shui Wai and Wong Tai Sin, plus marketing and retail businesses. In other words, this is one store exiting, not a full shutdown — but once the Central branch goes, Sincere will be left with a single department-store location in Mong Kok.

A Century in Central

Sincere is more than just "a department store". According to media accounts, it was founded in 1900 by Ma Ying-piu and was Hong Kong's first Chinese-owned department store, originally on Queen's Road Central. It pioneered practices that look ordinary today but were radical then: fixed, clearly marked prices (the "no bargaining" rule), issuing receipts to customers, and hiring female shop assistants.

In 1917, the flagship moved to Des Voeux Road Central into a new six-storey building, with a "Sincere Amusement Park" on the top floor. It was regarded as one of the earliest buildings in Hong Kong with lifts, and became a landmark in Central and Sheung Wan; by the 1930s and 40s, Sincere was ranked among the top four department stores in Shanghai. Yet after more than a century, the business kept shrinking: in 2013 the old flagship was reclaimed by its landlord, ending nearly a hundred years at that address, and it moved to the ground floor of Li Po Chun Chambers; in 2020 it was sold to the mainland-owned Weilu Group, formally ending a century-old family business.

So the Central closure marks Sincere's formal farewell to the Central and Sheung Wan base it occupied for over a century. At its peak Sincere had six Hong Kong branches, with stores in Causeway Bay, Sham Shui Po, Tsuen Wan and Kowloon City, among others. Its West Kowloon Centre branch closed in early January this year; now it is the turn of Central.

The Lease:
From HK$1.22m to HK$900k, Still No Deal

On the face of the announcement, this looks like a simple "landlord would not renew" story. But the rent history adds another layer. According to media accounts, the Central store opened in 2013 and, despite sitting in a commercial district rather than a traditional shopping belt, carried a monthly rent of HK$1.22 million. In mid-2016 the landlord renewed six months early and cut the rent by 26%, to HK$900,000.

A drop from HK$1.22 million to HK$900,000 is a substantial concession; yet this time even renewing proved impossible. The announcement does not disclose why the landlord would not renew, and a gap between the two sides' expectations on the new rent level cannot be ruled out. What can be said is this: a veteran department store flagship that once carried a seven-figure monthly rent is now struggling simply to hold onto a single shop unit.

More Than Rent:
Retail Up 16 Months, Department Stores Down

If Hong Kong's retail market were doing badly, Sincere's closure would not be news. But the opposite is true. The Census and Statistics Department said on 2 October that the provisional estimate of total retail sales value for August was HK$32.1 billion, up 5.6% year on year — beating expectations and marking a 16th consecutive month of expansion. For the first eight months combined, sales rose 8.5%.

Behind the headline growth, however, is clear structural divergence. Broken down by major retail category, "department store goods" fell 2.6% year on year in August — one of the few categories to decline. In short: retail as a whole rose, but department stores, as a format, moved the other way.

Source: Census and Statistics Department, provisional estimates of retail sales published 2 October 2026. Provisional estimates may be revised.

Where Did the Money Go? Three Channels

The gap between rising total sales and falling department-store sales is broadly absorbed by three channels.

1. Online.The provisional estimate of online retail sales in August was HK$2.8 billion, or 8.7% of the total, up 9.9% year on year. For the first eight months, online sales rose 23% — far faster than the overall market. As online's share keeps climbing, a store-centric department-store model is naturally hit first.

2. Higher-ticket and durable goods. The same data shows August sales of electrical goods and other durable consumer goods surged 29.1%, while jewellery, watches and valuable gifts rose 11.9%. Both are higher-priced categories, suggesting some spending power flowed into premium items rather than department-store shelves.

3. A shift in where people shop. Visitor arrivals keep rising, and habits such as spending across the border and on experiences have changed. Shopping patterns today look very different from a decade ago. A government spokesman said continued economic expansion and rising employment income should support local consumer confidence and spending — but for any single format, a healthy backdrop does not guarantee a share of it.

Sincere's Fix:
Cut Rent, Go Online

Facing the Central exit, Sincere's official line is "shrink on one side, transform on the other". The announcement said directors expect group sales to fall because of the Central closure; but with savings on rent and other overheads, the group's operating loss may narrow. It plans to put more resources into product diversification and sourcing, online retail, and brand renewal.

On the numbers, its interim results for the six months to the end of June 2026, announced on 28 August, showed revenue of HK$44.25 million, down 31.1% year on year, while the loss narrowed from HK$26.684 million a year earlier to HK$21.769 million. Falling revenue with a narrower loss reflects exactly that "shrink-to-stop-the-bleeding" approach.

Source: company announcements and media reports. Share prices are real-time information; this article does not forecast prices, and exchange quotes prevail.

Three Takeaways for Your Wallet

A century-old store exiting is news, but it also prompts a few reminders.

1. Start with your own spending. Retail data reflects a city-wide trend, but personal habits vary widely. Rather than relying on a feeling, track your spending for a month: how much went online, and how much went to physical stores? Use FinKit's expense tracker to categorise it and see where the money actually goes — only then do you know whether you are part of the trend, or the exception.

2. A closing-down sale is not automatically a bargain. "Lease expired, not a single item left" and "up to 80% off" sound tempting, but clearance stock typically has catches: limited styles, broken size runs, and stricter return policies. Before buying, check the online price on your phone — if it is about the same, there is no reason to rush for a "closing sale" price.

3. A veteran brand is not automatically a solid asset. This is not a call to buy or avoid any stock. It is a reminder that a company's brand history and its ability to make money are two different things. If you hold local retail or shopping-mall landlord stocks, the tenant mix, rent trends and any tenant departures are all part of the fundamentals. To see whether a company looks cheap or expensive, FinKit's stock valuation calculator can work out multiples from earnings and market cap as a starting point.

Related reading: Golden Week: 1.29m Mainland Visitors, Retail Up Just 4.5%; Payday to Paycheck? The 50/30/20 Budget Rule.

FAQ

The Bottom Line

Sincere's Central closure looks like a single lease story. Set beside 2026 retail data, it reads more like a microcosm: Hong Kong retail sales have risen for 16 straight months, yet department-store goods are among the few categories in decline. A strong backdrop does not mean every format benefits. For consumers, seeing where your money actually goes is more useful than a feeling about whether the market is good or bad.