Sa Sa International to close 15-20 Hong Kong stores
It will have 38 retail leases expiring by March 2022.
Hong Kong-based health and beauty retailer Sa Sa International is expecting to close 15-20 stores in Hong Kong in the next year, as the decline in tourist arrivals brought a drastic impact to its retail stores in tourist areas, the company said in its financial statement.
“The group continued to streamline its store network and close heavily-overlapping stores in tourist districts based on the premise of retaining its customers whilst lowering rental and other costs of physical retail stores,” the company said.
Sa Sa noted that it will have 38 retail leases expiring in the financial year ending March 2022 in Hong Kong.
As of 31 March, the total number of Sa Sa’s retail stores in Hong Kong and Macau declined from the peak of 118 two years ago to 100, with a net drop of 12 as compared to previous year. All closed stores were located in Hong Kong, which over 80% were located in tourist districts.
For the stores remaining in operation, the group negotiated for temporary rental concessions and rental reduction upon renewal of the leases. Total savings from actual rental expenses amounted to $30.71m (HK$238.4m) in the year as compared to previous year, the company said.