SaSa International

[port]

An old article

One bottle of perfume is sold every 4 seconds in Sasa stores in Asia. Also, according to Euromonitor 2010, Sa Sa’s market share for perfume in Hong Kong exceeds 50%.

http://www.superbrands.com/sg/pdfs/CSB_SG_FA_SASA.pdf

Recently vested.

[dreamybear]

Hong Kong cosmetics retail chain Sasa to close all 22 outlets in S’pore, 170 staff affected
December 3, 12:14 am

Sasa is closing all 22 stores in Singapore.........

https://mothership.sg/2019/12/sasa-close-singapore/
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meanwhile, the share price is hovering around 10 year low, with a PE of 11 & 9.5% yield but personally, I think still not considered cheap on other financial metrics. http://aastocks.com/en/stocks/quote/deta...mbol=00178

[jaco]

Hong Kong cosmetics retail chain Sasa to close all 22 outlets in S’pore, 170 staff affected
December 3, 12:14 am

Sasa is closing all 22 stores in Singapore.........

https://mothership.sg/2019/12/sasa-close-singapore/
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meanwhile, the share price is hovering around 10 year low, with a PE of 11 & 9.5% yield but personally, I think still not considered cheap on other financial metrics. http://aastocks.com/en/stocks/quote/deta...mbol=00178

Actually, I wonder if the Hong Kong riots were indeed that relevant for their disappointing results as they claim. There may be a more fundamental trend going on. Young women are generally ordering their cosmetics online nowadays. SaSa and other existing retail chains (Watsons, Bonjour) were late to invest in ecommerce and their brands may be irrelevant in the online space by now.

[cyclone]

Sa Sa International to close up to 25 per cent of stores in 18 months as Hong Kong retail slump claims more casualties
* Most of the stores are located in the tourist areas which are “most severely affected” by the downturn
* Company seeks to lower costs by seeking rental reductions, considering asking employees to take no-pay leave

Pearl Liu
Published: 7:21pm, 15 Jan, 2020
Updated: 10:50am, 16 Jan, 2020

Sa Sa International, Hong Kong's biggest cosmetics retailer, plans to shutter up to a quarter of its stores in the city over the next 18 months, blaming the “unabated difficult” business environment for its latest struggle. It is considering asking employees to take no-pay leave to lighten its operating costs.

The skin care and cosmetics chain operator has earmarked about 20 to 25 per cent of its outlets in Hong Kong for closures, according to a stock exchange filing. Most of them are located in the tourist areas “most severely affected” by the downturn as the industry slumped amid seven months of anti-government protests.

“In view of the unabated difficult operating environment in the Hong Kong, the group will continuously adopt various cost control measures,” it said. The group has begun to downsize its store network and proactively negotiate with the landlords on rental reduction to restore store profitability as early as possible.”

Hong Kong’s struggling retail sector has reported the worst figures on record amid the social unrest, with at least 5,600 job redundancies and 7,000 company closures expected in the coming six months, according to a survey conducted by Hong Kong Retail Management Association.

Businesses in the city saw disruptions to 38 per cent of their operating hours since in July, according to Lawrence Wan, senior director for advisory and transaction services at CBRE. Nine international brands withdrew from Hong Kong and closed 30 stores in 2019, he said, adding that more jewellery, watch and cosmetics retailers will shrink their business.

Sa Sa has already closed six stores in Hong Kong in the third quarter ending December 31, during which its retail sales in Hong Kong and Macau dropped 35.2 per cent year on year. That is in addition to a 24.1 per cent decline in the preceding quarter.

Sa Sa plans to terminate 19 stores between now and its next financial year ending March 31, 2021, according to a research note published by analysts at Jefferies on January 13. Another six will be shut down by 2022, they wrote.

On Tuesday, jewellery retail chain operator Chow Tai Fook also unveiled plan to trim its outlets in Hong Kong to grow its business in mainland China, citing “macro headwinds.”

“Management worries that it will be difficult to achieve break even by financial year 2021,” the analysts said. “Therefore it is considering other cost saving measures like rental reduction and staff cost reduction, for example, employees taking no paid leave.”

The cosmetic retailer will follow other retailers in the city to expand in mainland China and Macau.

More details in https://www.scmp.com/business/companies/...-hong-kong

[karlmarx]

It's probably a good move to shut its entire Singapore operations, and also a quarter of its Hong Kong stores. It might be able to turn a profit with the reduced expenses.

But in the longer run, it will still be negatively impacted if tourists do not return to Hong Kong. Its mainland business is still too small and unprofitable to matter.

It is likely that this year's dividends will be slashed.

[cyclone]

Nowhere to hide for Hong Kong retailers as Sa Sa cuts directors’ pay amid slump in cosmetics sales, disappearing mainland customers
* Sa Sa to cut salary of executive directors by 75 per cent for three months as to control costs
* Retail sales in Hong Kong and Macau crashed during the Lunar New Year holiday as coronavirus outbreak kept mainland customers at home

Martin Choi
Published: 5:45pm, 6 Feb, 2020

Sa Sa International, Hong Kong’s biggest cosmetics retailer, is asking its executive directors to take a 75 per cent pay cut for three months to help reduce costs, after sales during the Lunar New Year holiday slumped amid the coronavirus outbreak.

The move follows a report showing the group’s sales in Hong Kong crashed by 77.9 per cent in the first week of the Chinese New Year as the coronavirus outbreak kept mainland tourists at home. Including Macau, sales slumped 76.9 per cent.

The company compared its sales data during the January 25 to 31 week with the same festive week last year that fell on February 5 to 11, it said in a Hong Kong stock exchange filing on Thursday.

The crunch suggests there is no immediate relief for Hong Kong retailers after they took a beating from months of anti-government protests in the city for much of 2019. The viral outbreak has now undermined efforts by Sa Sa and other retailers to shift their focus to the mainland market as China locked down cities and curbed travels to contain the outbreak.

“Street front shops in particular have been more affected by the drastic reduction in tourist numbers, and will be facing extra difficulties,” said David Ji, head of research and consultancy of Greater China at Knight Frank. “The virus outbreak has had a big impact on Hong Kong’s retail and tourism industry.”

The number of mainland tourists in Hong Kong shrank by 85.5 per cent from January 24 to 30 from a year earlier, according to government data. Sa Sa said transactions involving mainland tourists plunged 92.1 per cent in Hong Kong, and 76.5 per cent in its Macau stores.

The salary cut represents “the first step in a new round of cost reduction initiatives,” chairman and chief executive Simon Kwok Siu-ming said in the exchange filing. Other moves include trimming store network and inventory, he said.

“The Group will substantially strengthen control measures in order to reduce losses,” Kwok said. It will also review market conditions and adjust its product strategies, he added.

Kwok is one of Sa Sa’s four executive directors, its filing shows. The other three are vice chairman Eleanor Kwok Law Kwai-chun, chief financial officer Guy Look and Melody Kwok Sze-wai.

More details in https://www.scmp.com/business/companies/...s-pay-amid

[soros]

Under the current growing coronavirus problem in China and closing of many border crossings and 14 days quarantine restriction on those allowed to enter HK , many SaSa shops in Hong Kong will be running at loss and have to close.

[cyclone]

Hong Kong cosmetics retailer Sa Sa closes 21 outlets in the city and Macau amid coronavirus outbreak
* The outlets closed include six in Kowloon, eight in the New Territories and three in Macau
* Closure will affect about 8 per cent of the retailer’s total sales

Zhang Shidong in Shanghai
Published: 8:27pm, 10 Feb, 2020
Updated: 9:22pm, 10 Feb, 2020

Sa Sa International Holdings, Hong Kong’s biggest cosmetics retailer, has shut 21 stores in the city and Macau as part of cost-saving measures, as the coronavirus outbreak deters shoppers and travellers alike.

The 21 outlets closed include six in Kowloon, eight in the New Territories and three in Macau, Sa Sa said in a press release on Monday. The closure will affect about 8 per cent of the retailer’s total sales.

The announcement followed a move by Sa Sa last week asking its executive directors to take a 75 per cent pay cut for three months to save on costs. Sales at the retailer slumped 78 per cent in the first week of the Lunar New Year holiday. At its stores in Macau, sales tumbled 77 per cent, as the outbreak kept mainland tourists at home.

“The group will undertake flexible staff deployment based on business demand, arranging for employees in the affected stores to work in other ones,” Sa Sa said in the statement. “Meanwhile, the group will take different shifts to reduce the number of staff on duty and cut costs.”

More details in https://www.scmp.com/business/china-busi...tlets-city

[soros]

The real situation may be worse because local people are not going to shops frequented by China Visitors. The China visitors have been stopped entering HK and SaSa has lost those buyers for cosmetics.

The local buyers are hunting for toilet paper and surgical masks to protect from virus infection.