2018 is looking good for Sa Sa sales
In this article (5)
Sa Sa International has released sales figures combining January and February – the first true indicator of how the Hong Kong retail market is performing so far this year.
Sa Sa sales in Hong Kong and Macau surged 14.6 per cent during the period, and same-store sales rose 11.1 per cent.
Official government figures show Hong Kong retail sales rose 4.1 per cent in January, compared to last year, but that figure was relatively meaningless given the timing of Lunar New Year, which fell in February this year and in January last year, preventing a true comparison. A government spokesman said at the time of the data’s release that, after taking the Lunar New Year factor into account, the figures suggested consumer sentiment was “rather robust” entering 2018.
These Sa Sa sales figures suggest a positive rebound from January 1 to February 28.
Chairman and CEO Simon Kwok said the number of transactions through Sa Sa stores rose 9 per cent and the average sale per transaction by 5.2 per cent.
“The overall performance was in line with our expectations. Sales growth was mainly driven by the increase in store traffic and consumer consumption. The number of transactions with locals and mainland tourists increased by 6.3 per cent and 12.5 per cent respectively, while
their average sale per transaction also increased by 4.6 per cent and 3.6 per cent respectively.”
Kwok says Sa Sa is benefitting from Hong Kong’s retail market recovery, and is “cautiously optimistic” about the outlook of Hong Kong and Macau markets.
“We will continue to optimise product offerings and enhance customers’ shopping experience to cater for consumer demand in the fast changing markets,” he said in a stock exchange filing.
Questions & Answers
Q.What contributed to the increase in Sa Sa's sales during January and February?
What contributed to the increase in Sa Sa's sales during January and February?
Sales growth was primarily driven by an increase in store traffic and consumer consumption. This included a rise in transactions and average sales per transaction from both local customers and mainland tourists.
Q.How did the sales performance compare between local customers and mainland tourists?
How did the sales performance compare between local customers and mainland tourists?
The number of transactions increased by 6.3 per cent for local customers and 12.5 per cent for mainland tourists. Their average sale per transaction also rose by 4.6 per cent and 3.6 per cent respectively.
Q.Why were the official government retail sales figures for Hong Kong considered less meaningful?
Why were the official government retail sales figures for Hong Kong considered less meaningful?
The official figures were less meaningful for direct comparison due to the timing of Lunar New Year. It fell in February this year, but in January last year, complicating a true year-on-year assessment.
Q.What is Sa Sa's outlook for the Hong Kong and Macau markets?
What is Sa Sa's outlook for the Hong Kong and Macau markets?
Sa Sa is cautiously optimistic about the outlook for these markets, benefiting from the retail market recovery. They plan to optimise product offerings and enhance customer shopping experiences to meet changing demands.
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