Tourists drive Sa Sa sales
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Sales performance has improved marginally for cosmetics chain Sa Sa International Holdings for its third quarter, to the end of December.
This was mainly a result of a rise in numbers of mainland customers driving a 5.4 per cent increase in the number of transactions in Hong Kong and Macau while local trade remained flat. However, the average sales per transaction of local customers increased by 0.2 per cent while for mainland customers there was a 3.6 per cent drop.
Sa Sa sales growth is a result of the group’s ongoing efforts to adjust its product offerings to adapt to the market demand for trendy products, the company says. This also resulted in continued downward pressure on gross profit margin for the quarter.
For the quarter, the group’s retail and wholesale turnover eased up by 0.9 per cent year-on-year, while the figures for other markets outside Hong Kong and Macau – including China, Malaysia, Singapore, Taiwan and online – were flat.
Following the gradual tapering of year-on-year retail sales decline in the first and second quarters in Hong Kong and Macau, same-store Sa Sa sales in the third quarter fell by 2 per cent while retail sales rose by 1 per cent.
Sa Sa had 290 outlets in total at the end of December, up from 283 as at September 30. For Hong Kong and Macau, there were 115 outlets, up by two; China had three more stores for a total of 56; Singapore lost two stores to finish the year with 21; Malaysia gained five outlets for 73; and Taiwan lost a store to end the year with 25.
Questions & Answers
Q.What specifically caused the 'marginally improved' sales performance for Sa Sa International Holdings in the third quarter?
What specifically caused the 'marginally improved' sales performance for Sa Sa International Holdings in the third quarter?
The improvement was mainly due to a rise in mainland customers, which led to a 5.4 per cent increase in transaction numbers in Hong Kong and Macau. This offset flat local trade performance during the quarter.
Q.Did the increased transactions from mainland customers translate into higher average spending per transaction?
Did the increased transactions from mainland customers translate into higher average spending per transaction?
No, despite the rise in mainland customer numbers, the average sales per transaction for these customers actually saw a 3.6 per cent drop. Conversely, local customers increased their average spend by 0.2 per cent.
Q.How did Sa Sa's store count change across its various markets by the end of December?
How did Sa Sa's store count change across its various markets by the end of December?
Sa Sa increased its outlets to 290 from 283. Hong Kong and Macau gained two stores, China gained three, and Malaysia gained five. Singapore lost two stores, and Taiwan lost one.
Q.What was the retail and wholesale turnover growth for the group, and how did other markets perform?
What was the retail and wholesale turnover growth for the group, and how did other markets perform?
The group's retail and wholesale turnover eased up by 0.9 per cent year-on-year. Other markets outside Hong Kong and Macau, which include China, Malaysia, Singapore, Taiwan, and online, showed flat performance.
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