Retail in Asia

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HK cosmetics chain Sa Sa’s 1Q sales up 20.1pc

Hong Kong cosmetics retailing group Sa Sa International last week said its retail and wholesale sales jumped 20.1 percent to HKD1.91 billion (USD246.2 million) for the three months ended on 30 June 2013. Turnover in Hong Kong and Macau rose 24.8 percent to HKD1.53b, with same store sales growth of 17 percent. The group’s retail and wholesale turnover in other markets, including Mainland China, Singapore, Malaysia, Taiwan and sasa.com, recorded a growth of 4.2 percent during the first quarter.

During the period, Sa Sa continued to benefit from the growing demand for cosmetics and beauty products, and strengthened penetration in non-traditional tourist areas to better capture opportunities brought by the increasing number of short-haul tourists from Mainland China.

The cosmetics retailer opened four stores and counters in the first quarter – three in Hong Kong and Macau, one in Malaysia. By the end of June, the group’s retail network had a total of 264 stores, including 8 single-brand counters/stores.

"The group’s Hong Kong and Macau market maintained the upward momentum from the previous year and started the New Year on a strong note. Sales in the first quarter benefited from a low base last year and recorded stronger-than-expected growth on the back of increase in sales to both local residents and mainland China tourists," said Simon Kwok, Chairman and CEO of Sa Sa International.

"In contrast, the second quarter would be more challenging against the background of a high comparable base and depreciation of currencies in the region, and in particular, the Japanese Yen. Overall, we remain cautiously optimistic on its sales outlook," he added.