Sa Sa International Holdings Limited (Sa Sa), Asia’s leading cosmetics retailing group, announced its overall turnover grew by 34% to 2,817 million Hong Kong dollars (HK$) and its net profit rose by 41.5% to 249.5 million Hong Kong dollars during the six months ended 30 September 2011. The group benefited from the strong performance of its core markets: Hong Kong and Macau.
Sa Sa’s turnover in Hong Kong and Macau thus rose by 35.3% from HK$1,629.4 million to HK$2,205 million during the period, with same store sales rising by 24.1%. According to the group, this growth was mainly driven by buoyant local demand and purchases of tourists from Mainland China. “Turnover growth was driven more by the number of transactions than average value per transaction, reflecting a growing and vibrant customer base, although both figures recorded an increase,” the company said in a release.
Thanks to a growing number of stores and the expansion of its network (14 cities with 39 stores), the group’s Mainland China business recorded turnover growth of 80.8% to HK$ 108.5 million, and same store sales achieved double-digit turnover growth.
A new store image was launched to offer more space to beauty brands for image counters and store layout by colour zones, and to facilitate customers’ access to both products and beauty consultants.
However, Sa Sa made losses of HK$ 19.75 million in mainland China over the period. “The performance of this market reflected the increased overheads to support expansion, increased store-opening expenses, and a pool of experienced staff being stretched across an expanding network,” commented the company.
Sa Sa’s turnover for the Singapore and Malaysia market grew by 24.6% and 15.2% respectively during the period, with the number of stores remaining at 20 in Singapore and one new store added in Malaysia to reach 39 in total.
Eventually, in Taiwan Sa Sa recorded a turnover growth of 39.2%, same store sales rose 4.1%. The retailer achieved breakeven on the island.
In the short term, the group intends to carry on its investments in Mainland China and to strengthen its efforts to achieve scalability. To support this strategy, Sa Sa will allocate more resources to train its staff, increase automation and develop new stores.
“Overall, in all markets, Sa Sa aims to enhance recognition of the ‘Sa Sa’ brand, broaden the customer base, expand retail network to sharpen the Group’s competitiveness and gain market share,” the company said.