Date
11 December 2017
A decline in mainland visitor spending has led to weaker revenues for cosmetics retailer Sa Sa. Photo: Bloomberg
A decline in mainland visitor spending has led to weaker revenues for cosmetics retailer Sa Sa. Photo: Bloomberg

Sa Sa faces a challenge after weak same-store sales

Cosmetics retailer Sa Sa International Holdings Ltd. (00178.HK) may adjust its sales and marketing strategies and tweak its product mix following lackluster revenues for the three months ended December.

The company suffered a 2.7-percent drop in same-store sales in Hong Kong, Macau and Taiwan in the last quarter of 2014, compared to the same period a year ago, the Hong Kong Economic Journal reported.

That marks a reversal from the 6.9 percent growth recorded in the first half, the paper noted.

The average transaction value declined 6.4 percent in the last three months even though the transaction volume was up over 5 percent.

Sa Sa sees a soft outlook for the coming months, prompting it to mull changes in its sales and marketing strategies and strengthen its product mix, the report said.

Analysts were quoted as saying that the prospects for the retailer this year would be rather tough, as the consumption of mainland tourists in Hong Kong has weakened. As visitors curb spending, Sa Sa and its peers will face more pressure, they said.

That said, the recent interest rate cut in China may bring some temporary improvement in mainland consumer sentiment, according to the analysts.

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VW/MY/RC

Freelance journalist

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