Demonstrations pinch SaSa sales
Cosmetics chain Sa Sa International says year on year sales in its core Macau and Hong Kong markets slipped one per cent during Golden Week.
The week long National Holiday period – from October 1 to 7 – is a commonly used benchmark of retailer performance in the region.
In a statement, group chairman and CEO Simon Kwok said same store SaSa sales fell three per cent, with both figures below the company’s expectations.
“During the period, sales to Mainland Chinese tourists remained unchanged as the number of transactions attributable to them increased by over 10 per cent and was offset by a drop of over 10 per cent in their average spending. On the contrary, sales to local customers experienced a drop of approximately six per cent, mainly attributable to a decrease in traffic as a result of the recent demonstrations in Hong Kong.”
Kwok said the demonstrations in Hong Kong 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.
“We believe this event will affect our sales to some extent in the next quarter.”
Meanwhile, Sa Sa was named ‘Best of the Best Managed Company in Hong Kong – Medium Cap’ by Asiamoney for garnering the magazine’s ‘Best Managed Company Award in Hong Kong’ from 2010 to 2012, as the only company in Hong Kong to consecutively win three times in the past 15 years, since the launch of the annual award.
Asiamoney is a leading financial magazine in the Asia-Pacific region. It organizes the ‘Best Managed Companies Awards’ annually which surveys the opinions of fund managers and analysts to determine the best-managed small-, medium- and large-cap corporations across the region, acknowledging companies that stand out for financial performance, leadership and strategic vision.