The lack of tourists affected its sales to mainland customers.
Sa Sa International's turnover crashed 55.3% YoY to $89.75m (HK$695.6m) in Q2 FY20-21, the company announced.
On a QoQ basis, turnover rose 17.8%.
For the first half of the financial year, its total retail sales plunged 70.8% YoY in Hong Kong and Macau. In Q2 for the two markets, turnover fell 65.6%, whilst same-store sales contracted 61%.
The company noted that the pandemic has continued to affect travel and tourism, leading to 97.4% plummet in the total number of transactions by mainland customers at the group’s business operations.
Moreover, the overall transaction volume in Hong Kong and Macau fell 45% YoY. However, the total number of transactions by local customers at the group’s business operations rose by 8.5% in Q2 compared Q1.
"Consequently, the group has been adopting various measures to cope with the situation. This has included the rationalizing of its store network, especially stores in districts that are frequented by tourists. It has also been negotiating with landlords for rental reductions and short-term leases," Sa Sa's group CEO and Chair Simon Kwok said.
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