Hong Kong headquartered Sa Sa International Holdings Limited has announced it will close all stores in Taiwan to concentrate its resources on mainland China, Hong Kong, Macau, Singapore and Malaysia markets as well as its e-commerce business.
The decision comes after six consecutive years of losses in the island and several attempts to reorganise the operations and reduce costs. For the 10 months ended 31 January 2018, Sa Sa’s turnover in Taiwan decreased by 11.5% in local currency terms year on year to HK$154.3 million.
Sa Sa had 21 shops in Taiwan and approximately 260 employees will be affected by the closure which should be effective on 31 March 2018. “They will be compensated according to local labour regulations,” said the company.
The group operates 119 stores in Hong Kong, 56 in mainland China, 19 in Singapore and 75 in Malaysia, selling over 700 brands ranging from skincare to beauty supplements. Sa Sa considers the closure of the Taiwan business will help it “to more fully capture the opportunities that will arise” in other markets.
“While the closure of all the stores in Taiwan will result in a loss, it will not have a significant adverse effect on the Group’s financial performance and operations as the Taiwan market only accounts for a small portion of the Group’s turnover (2.5% for the six months ended 30 September 2017),” added the company in a release.