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Sa Sa to close 20 more stores in Hong Kong and pivot online

Sa Sa to close 20 more stores in Hong Kong and pivot online

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Sa Sa International is planning to close up to 20 stores in Hong Kong in the next three quarters but will focus more on its online business across markets. The company announced its annual results on 16 June. As of 31 March 2021, the total number of Sa Sa’s retail stores in Hong Kong and Macau SARs was reduced from the peak of 118 two years ago to 100, with a net decrease of 12 as compared to the previous year. All closed stores were in Hong Kong. Among which, over 80% were located at tourist districts such as Tsim Sha Tsui, Causeway Bay and Mong Kok,

To control the expense, the company said it will focus on rationalising its store network and reducing store expenses to pursue its long-term goal of optimising cost structure. Moreover, Sa Sa International is planning to close 15 to 20 stores by the end of 31 March 2022.

Meanwhile in China, the company said as the pandemic has been well managed as compared to the rest of the world. During last fiscal year ended on 31 March 2021, Sa Sa International opened 17 new stores, among which seven werelocated in Southern China.

Looking ahead, the company is planning to expand its online business as the pandemic has driven more online consumption across the globe, including local consumers in Hong Kong. Sa Sa International said it will invest more resources in expanding online business and take full advantage of its portfolio of physical stores through accelerating the collaboration of online platforms and offline store network.

To respond to changes in consumers' online shopping behaviour, Sa Sa International launched a WeChat mini-programme for Chinese consumers. The company also launched protective products on its Hong Kong website, increasing sales of the Hong Kong website by nearly five times year-on-year.

In 2019, the brand decided to close all of its 22 retail stores in Singapore to focus on core markets such as Malaysia, Hong Kong and Macau SARs, Mainland China, as well as its eCommerce business. According to Sa Sa, the group’s performance in Singapore had been less than satisfactory for many years, and has recorded losses for six consecutive years. In order to improve the performance of the Singapore market, the company took measures such as restructuring the local management team and enhancing store display and product mix. However, the company said the results were far from satisfactory. A total of approximately 170 employees were affected by store closures.

Not too long after Sa Sa partnered with eCommerce company Shopee to launch its official store on Shopee's platform in Singapore. Through this long-term partnership, Sa Sa aims to strengthen its online presence, and tap on Shopee’s user base to reach a wider audience.

To find out how you can hit refresh on your retail plans, join us at our Retail Reset conference.

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