Sa Sa sales growth slows amid Occupy protests but CEO sees improvement

Cosmetics giant Sa Sa International Holdings saw same-store sales growth in Hong Kong and Macau slow to 2.4 per cent year on year from the start of last month to Sunday, down from 6.9 per cent in the six months to September.

Chief executive Simon Kwok Siu-ming said the decline could be attributed to the impact of the Occupy movement but sales were improving week by week.

"It has stabilised and it seems that consumer sentiment is coming back and people feel like they can start spending again," Kwok said at an interim results press briefing yesterday.

The beauty chain announced profit for the six months to September was down 4.9 per cent year on year at HK$339.8 million.

Turnover increased 8.4 per cent to HK$4.22 billion.

Kwok said that although sales in some stores had suffered since the Occupy Central protests began in late September, northern district stores such as those in Sha Tin, Yuen Long, Tuen Mun and Sheung Shui had seen sales increases of about 30 per cent.

"The average ticket price [in those areas] is lower than areas like Causeway Bay but it is not low," he said. "Overall, including both mainlanders and locals, the average ticket is about HK$280. Even in Sheung Shui, the average receipt is between HK$500 and HK$600, so that is not low."