Hong Kong and Macau drag down Sa Sa International
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Hong Kong-listed beauty products retailer Sa Sa International says its retail and wholesale turnover fell 15.1 per cent in the last quarter.
And in the Hong Kong and Macau markets, turnover tumbled 17.9 per cent for the quarter ended March 31, while same-store sales dropped 17.6 per cent.
There were 5.2 per cent fewer transactions, with average sales per transaction sliding by 13.9 per cent.
However, in other markets – including Mainland China, Malaysia, Singapore and Taiwan, and on its online store – trade was a shade more buoyant, easing just 2.8 per cent.
Fourth-quarter retail sales in Hong Kong and Macau market continued their slide because of further impact by Mainland China’s new “one-trip-a-week” policy on the retail market. There was also weaker sentiment with a rise in outbound travel by locals.
Responding to the slower market, Sa Sa will optimise product offerings and adjust sales strategies, says the group, which closed one store during the quarter. This was either in Hong Kong or Macau, but not specified in its report.
Its total of 291 outlets comprises 113 in Hong Kong/Macau, 66 in Malaysia, 57 in China, 32 in Taiwan and 23 in Singapore.
Questions & Answers
Q.What is the primary reason for the decline in Sa Sa's sales in Hong Kong and Macau?
What is the primary reason for the decline in Sa Sa's sales in Hong Kong and Macau?
Sales in Hong Kong and Macau continued to slide due to the impact of Mainland China’s new “one-trip-a-week” policy. Weaker sentiment with a rise in outbound travel by locals also contributed to the decline.
Q.How did Sa Sa International's performance in other markets compare to Hong Kong and Macau?
How did Sa Sa International's performance in other markets compare to Hong Kong and Macau?
In other markets, including Mainland China, Malaysia, Singapore, Taiwan, and its online store, trade was more resilient. Turnover eased by only 2.8 per cent, significantly less than the 17.9 per cent drop in Hong Kong and Macau.
Q.What actions is Sa Sa International taking in response to the slower market conditions?
What actions is Sa Sa International taking in response to the slower market conditions?
Sa Sa plans to optimise its product offerings and adjust its sales strategies. The group also closed one store during the quarter, which was located in either Hong Kong or Macau.
Q.Where is Sa Sa International's largest number of outlets located?
Where is Sa Sa International's largest number of outlets located?
The company has its largest concentration of outlets in Hong Kong and Macau, with 113 stores. This is followed by 66 stores in Malaysia, 57 in China, 32 in Taiwan, and 23 in Singapore.
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