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2020-01-15 16:55
Hong Kong beauty giant Sa Sa announced today (15th) the operating data for the third fiscal quarter from October 1 to December 31, 2019. The overall retail and The turnover of wholesale business dropped by 27.3% year-on-year. Among them, retail and wholesale sales in Hong Kong and Macau fell 35.2% year-on-year, while same-store sales fell 34.7%. The decline was affected by a 32.3% drop in the number of transactions, mainly due to a 50.8% drop in the number of transactions by mainland customers and a 9.1% drop in local customers.
According to reports, due to the intensified decline in the number of mainland tourists visiting Hong Kong, it fell by more than 50% in November last year. The number of transactions involving mainland tourists in the third quarter of Sa Sa dropped sharply by 71.7%, while local tourists also fell by 9.5%. In the third quarter, Hong Kong sales fell 47.5% year-on-year. Among them, the sales performance in December last year improved slightly, with the year-on-year decline reduced to 45.8%, but most of them were delayed consumption by local customers, while there was no significant improvement in mainland visitors.
Given that Hong Kong’s severe operating environment has not slowed down significantly, Sa Sa said that it will continue to implement various measures to reduce overall costs in order to maintain competitiveness and restore profitability. Since rental costs are one of the largest operating expenses, Sa Sa has begun to reduce its store network in Hong Kong, depending on the sales performance of the stores, the business situation in each district and the extent of rent reduction. The tentative plan is to close about 20% to 25% of the shops in the next 18 months, most of which are mainly in tourist areas.
(Editor: Anle)
