Flat sales across the Sa Sa Singapore network has prompted a rethink of the brand’s local network.
In the first half year, Sa Sa reported turnover of HK$112.8 million (S$20.445 million) in Singapore, remaining flat in local currency terms over the same period last year.
“The group will continue to build scalability and profit potential by closing inefficient stores and opening stores in new malls with good potential,” the company said in its interim trading statement.
Reporting a 10.6 per cent decline in sales to HK$3.778 billion in the first half of the current year, and a 55 per cent plunge in profit to $153 million, Hong Kong-headquartered Sa Sa revealed a strategy to “develop other businesses beyond traditional operations”, including tapping the opportunities of O2O and cross-border eCommerce.
“The group’s O2O initiatives will initially launch in Hong Kong and gradually extend to mainland China. For the China market, the O2O initiatives will significantly broaden product offerings in its physical stores through online sales and cross border fulfillment. The group aims to use different channels and to leverage a variety of online partners to increase online exposure, including operating physical stores to promote O2O in Free Trade Zones, and cooperating closely with major China online operators, all with their unique positioning and correspondingly different opportunities,” the company said in its interim report.
New store concepts are also on the drawing board.
“The group’s strategy for new store concepts includes introducing more trendy and lifestyle concepts to attract young and trend-setting customers, much improved product display, and more emphasis on enhancing the shopping experience.”
Sa sa says it also aims to place more emphasis on the unique shopping experience with Sa Sa through improved product displays, while changing the mindset of its beauty consultants to one that is more receptive to consumer preferences.
“In addition, the group will substantially strengthen its online marketing efforts, including the use of social media channels to improve interactivity.”
Meanwhile, turnover for Sa Sa Malaysia was HK$141.9 million, an increase of 2.5 per cent in local currency terms over the same period last year. However, same store sales decreased 8.5 per cent in local currency.
“Sales and profit growth were restrained by the implementation of GST [on April 1], which adversely impacted store productivity during the transitional period. This effect is expected to be normalised in the second half.”
