Retail | Sa Sa reports flat sales in Macau

Skin care and cosmetics retailer Sa Sa International Holdings Ltd has announced that it expects a drop in profits of over 50 percent for the period that ended in March due to a “harsh retail climate.”
For the fourth quarter, from January 1 to March 31, the group’s retail and wholesale turnover decreased by 15.1 percent. Revenue in the Hong Kong and Macau market declined by 17.9 percent, while same-store sales decreased by 17.6 percent, the company said.
Meanwhile, in a statement issued this week, Sa Sa implied that its retail sales in Hong Kong and Macau remained flat over the Labor Day holiday, compared to the same period last year, while year-on-year growth in same-
store sales was approximately 1 percent.
“The group’s retail sales in Hong Kong and Macau during the three-day Labor Day Holiday in 2016 remained flat compared with last year,” said Simon Kwok, chairman and chief executive director of the Group. “Sales attributable to mainland customers recorded a six percent growth, mainly driven by increased transaction volume.”
However, he stressed that this increase was offset by the 13 percent drop in sales to local customers, which reflected the poor consumption sentiment and increased outbound travel of locals due to the strength of the Hong Kong dollar.
Moreover, in a separate statement, the Group revealed that the number of transactions decreased by 5.2 percent, while the average sales per transaction decreased by 13.9 percent. Sa Sa’s retail and wholesale revenue in other markets (including mainland China, Singapore, Malaysia, Taiwan and sasa.com) recorded a drop of 2.8 percent during the fourth quarter.