Sa Sa to close five to eight retail stores in Hong Kong and Macau in the second half

Beauty product retailing group Sa Sa will continue to cut the number of Hong Kong and Macao stores, with five to eight retail stores expected to be closed in the second half.   

Based on the current plan, the group expected a net decrease of 15 to 18 stores year on year in the two cities by March 2022.  

Sa Sa International Holdings said that in response to the plunge in the number of tourist arrivals in Hong Kong, it has been adjusting its store strategies since September 2019. It is closing those stores located in the tourist districts with excessively high rental costs and lack of satisfactory contribution.  

"The total number of the group's stores in Hong Kong and Macau has decreased from the peak of 118 in September 2019 to 91 in September this year," Sa Sa said.  

The group also said that given that it is less likely for Hong Kong to re-open its border with the mainland this year, sales generated from mainland tourists in Macau will likely continue to be an essential element of the Hong Kong and Macau business and would also be one of the critical drivers of achieving breakeven in the short run.   

"In Hong Kong, local customers will remain a major source of customers in the coming months," Sa Sa said. "The group will adjust its product portfolio in response to the changes in the preferences of local customers and also consider opening new stores in residential areas to improve sales and gain local market share.  

In addition, Sa Sa also planned to unify some of the administrative and management functions and accelerate the automation process to further reduce the cost of non-sales staff.  

"Sa Sa will further optimize the operational efficiency to achieve profitability as soon as possible," the group added.