Hong Kong-based skincare and cosmetics retailer, Sasa will close all 22 of its retail stores in Singapore after recording six years of losses. The trend toward cheaper Asian beauty products come amid a slowdown in China’s growth and an official clampdown on consumption and conspicious spending.
The closing down of Sasa outlets will affect 170 employees
Based on the announcement made on Dec 2, the move will affect a total of 170 employees. All affected will be fully compensated in accordance with local employment laws and regulations.
The company said that it had taken measures in recent yars to restructure the local management team and to enhance store dispay and product mix with a view to driving sales. Unfortunately, the results were far from satisfactory.
The sales drastically declined for the past few years
For the past six months, the turnover for its Singapore operations was HK$99.4 million (s$17.3 million), a decline of 4.6% from last year. The move is a part of Sasa’s efforts to focus resources on its core market in Hong Kong which has become extremely difficult due to a drastic decline in mainland China tourists arrivals.
Sasa will focus to develop Malaysian operations
Sasa said it will speed up its expansion to mainland China, as well as the development of its e-commerce business. In addition, the management team that manages both Singapore and Malaysia operations will reshift its focus to develop the Malaysian operations which Sasa said has a higher potential for profitability.
The closing of Singapore outles won’t have any significant impact on the operations of the group
The termination of the outlets in Singapore is not expected to have any significant impact on the operations of the group. Sasa International operates a total of 265 stores, only 22 of them are located in Singapore.