Date
24 October 2017
Bonjour saw a sharp fall in sales during the Golden Week holidays as a result of the street protests, while Sa Sa said the impact was not as bad as it had expected. Photos: yinagoh.blogspot.com
Bonjour saw a sharp fall in sales during the Golden Week holidays as a result of the street protests, while Sa Sa said the impact was not as bad as it had expected. Photos: yinagoh.blogspot.com

Bonjour, Sa Sa sales drop in Golden Week amid street protests

Cosmetics and personal care retailers Bonjour Holdings Ltd. (00653.HK) and Sa Sa International Holdings Ltd (00178.HK) said sales fell during the week-long National Day holidays as a result of the Occupy street protests.

Bonjour said sales during the period declined 8 percent from a year earlier, while same-store sales plunged 16 percent.

Half of its retail stores are located in the protest-hit areas, and street barricades have forced many of the outlets to suspend operations, hurting sales, Ming Pao Daily reported Friday.

Bonjour said the drop in pedestrian traffic is the main reason for the poor sales during the Golden Week. Also, mainland tourists are no longer big spenders; their average spending per transaction has dropped, it said.

Sa Sa said sales in Hong Kong and Macau during the period dropped 1 percent from a year earlier, while same-store sales fell about 3 percent, according to the newspaper.

Simon Kwok, the company’s chairman and chief executive, said the decline in sales was not as bad as he had expected.

“During the period, sales to mainland Chinese tourists remained unchanged as the number of transactions attributable to them increased by over 10 percent, and this was offset by a drop of over 10 percent in their average spending,” Kwok said in a statement.

But sales to local customers saw a 6 percent drop, which could be mainly attributed to a decrease in traffic as a result of the street protests.

“The recent demonstrations in Hong Kong have affected certain tourist districts, including Central, Causeway Bay, Mong Kok and Tsim Sha Tsui, where overall sales recorded a significant decline, while most of the remaining districts recorded positive growth,” he said.

The Occupy protests are expected to affect sales in the next quarter, but will have a limited impact on the company’s annual sales performance, Kwok said.

Kwok said he hopes the protests will be resolved in a peaceful way so that the impact on people’s livelihood and the economy will be reduced.

He was disappointed that the dialogue between the government and the Hong Kong Federation of Students, due to be held on Friday, was cancelled, noting that communication could help to reduce differences.

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JH/JP/CG

EJ Insight reporter

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