Sa Sa quarterly turnover slumps 74pc to $406m

Business | Avery Chen 14 Jul 2020

Cosmetics chain Sa Sa International (0178) saw turnover in the Hong Kong and Macau market plunge by 74.3 percent to HK$406.3 million in the April-June quarter, as a slump in mainland tourist arrivals continued amid the Covid-19 pandemic.

The company's total retail and wholesale turnover fell by 67.9 percent to HK$590.5 million during the three months ended June 30.

Same-store sales in Hong Kong and Macau market also plummeted by 71.9 percent while average sales per transaction dropped by 42 percent to HK$198. Sa Sa said the drop in mainland tourist arrivals led to a 57 percent decline in the overall transaction volume, as the number of transactions with mainland tourists plunged by 98.4 percent.

Visitors arrivals from mainland China have slumped more than 85 percent year-on-year in April and May, said the Hong Kong Tourism Board. The June data is not yet available.

Meanwhile, local customers account for the bulk of its revenue in the Hong Kong and Macau market. But consumption sentiment in the two markets remains weak, with the average sales per transaction of local customers dropping by 6.5 percent.

Thanks to the Macau government's Consumption Subsidy Scheme, sales from the city saw double-digit growth in both May and June, Sa Sa said.

And in Hong Kong, Sa Sa has received around HK$61.3 million in subsidies from the government's Employment Support Scheme, which replenishes its cash balance to around HK$663 million as of June 30. The company said that is adequate to meet its current business needs.

Sa Sa saw a combined 27.8 percent decline in turnover in mainland China, Malaysia and the e-commerce markets.

The company had 231 stores on June 30, falling by four from the end of March. Shop numbers in Hong Kong and Macau dropped by three to 109.

Separately, apparel retailer Bauhaus International (0483) posted a 41 percent year-on-year decline in same-store sales in the Hong Kong and Macau market for the June quarter. The Taiwan market also saw a 38 percent drop.

Overall same-store sales of the company slumped 41 percent,

Bauhaus closed down its two offline shops in mainland China last quarter. It had 97 self-managed offline shops at the end of June, down by five from March 31.

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