Sa Sa International has seen significant offline sales growth of 58.7% year-on-year in Hong Kong on the back of tourism, exhibitions and consumption-boosting campaigns, as well as customer loyalty. It is also looking to re-enter the Singapore market in the upcoming financial year.
According to the Group’s interim results for the six months ended 30 September 2023, the company’s same-store sales in Hong Kong increased by 64.9% during the period, with the number of transactions and the average transaction amount growing by 24.9% and 33.9%, respectively.
Macau also enjoyed a return of tourism during the period with same-store sales growing 67.5% year-on-year. The offline sales recorded a significant year-on-year growth of 84.1%, recovering to 65.9% of pre-pandemic levels.
In general, the Group’s profit for the period improved to HK$102.4 million, a significant turnaround from the loss of HK$133.2 million for the previous period. This is particularly pleasing as sales and margins are typically higher in the second half of the financial year, which includes winter products. The Group operated 184 retail stores across all regions as of 30 September 2023.
Apart from the three newly opened stores in Hong Kong, the Group is actively seeking to expand its store network, looking at gaps in non-tourist areas to better serve local consumers and also prime tourist locations. Three extra new stores will be added in Hong Kong, with one in Wong Chuk Hang, one in the Central district, and one store at Kai Tak to be open next year.
On the other hand, the Group’s offline sales in Southeast Asia for the period declined marginally by 3.2% year-on-year with same-store sales decreasing by 1.4%. Despite this, offline sales have reached 80.3% of pre-pandemic levels.
The Group is also planning to re-enter the Singapore market as part of its expansion into the SEA market. It has entered into rental agreements to open three Sa Sa retail stores in the second half of this financial year.
In March 2024, the first rental agreement was signed located at Westgate, CapitaLand’s premier lifestyle and family mall in the West of Singapore. These three new stores in Singapore look to re-establish their offline presence and complement their existing online business, setting the foundations for its continued growth in Southeast Asia. The Group will also add two stores in Kuala Lumpur in the second half of the year.
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While in mainland China, the group operated seven fewer offline stores compared to the previous period and offline sales decreased by 25.2% to HK$84.8 million. Meanwhile, online sales in mainland China amounted to approximately 65.3% of total sales. The group said mainland China remains a core focus of the group’s long-term growth strategy.
Looking ahead, the group anticipates a boost in consumption within the retail and tourism sectors on the back of stimulating economic measures implemented by the Hong Kong and Macau governments. These measures are aimed at stimulating a heightened atmosphere of spending during the upcoming festive celebrations over Christmas and New Year.
Simon Kwok, chairman and chief executive officer of the group, said: “The HKSAR government has been active in stimulating tourism and organised various business exhibitions which helped to improve consumer sentiment and create a spending occasion. The group has been preparing for the return of tourism by adopting agile management practices, including extending store opening hours, refreshing the product mix, flexibly adjusting frontline staff deployment and inventory to cope with the increasing demand.”
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