Retail sales in Hong Kong and Macau during the three-day Labour Day holiday were flat, say the directors of skincare and cosmetics retailer Sa Sa International Holdings.
Mainland sales had 6 per cent growth compared with the same holiday last year, mainly driven by increased transaction volume. However, this was offset by a 13 per cent drop in sales in Hong Kong, reflecting weak sentiment and increased outbound travel by locals during the long weekend.
Meanwhile, Sa Sa expects its first-quarter profits to dive by more than 50 per cent because of the “harsh” retail climate.
During the period, its retail and wholesale turnover sagged by 15.1 per cent. Revenue went down 17.9 per cent in the Hong Kong and Macau market.