Sa Sa blames weak consumer confidence for drop in turnoverBusiness | 10 Jan 2019 5:40 pm
Sa Sa International(0178) announced its retail and wholesale turnover fell 2.2 percent year-on-year to HK$2.18 billion for the last quarter in 2018, amid weaker consumer confidence.
Consumer sentiment remained sluggish due to the weaknesses in yuan exchange rate and stock market under the continued shadow of the Sino-US trade war. In addition, the new E-commerce Law passed by the Chinese government in August 2018 came into force early this year and made Daigou traders more cautious in running their businesses, the company said.
In Hong Kong and Macau markets, the retail and wholesale turnover decreased by 2.8 percent to HK$1.84 billion, while same store sales dropped by 3.7 percent.
Transaction volume of mainland tourists increased by 5.8 percent while that of local customers decreased by 5.2 percent, leading to a slight growth of 0.4 percent in the overall transaction volume.
The average sales per transaction of local consumers and mainland tourists decreased by 0.2 percent and 6.1 percent respectively on a year-on-year basis which resulted in a 2.6 percent decline in total.