Sasha New Year Ding Cai Wei Wang Same store sales frustrated 8% Mainland customer spending price fell more than 3%

After the unexpected fall in sales in November and December last year, the cosmetics stocks Salsa (00178) announced that the sales during the Chinese New Year were also unsatisfactory. The overall retail sales of Hong Kong and Macao decreased by 4.8% year-on-year, and the same store sales fell by 7.9%. Although the mainland passengers during the holiday period The number of visitors to Hong Kong surged by 31.6% compared with the same period of last year. However, the trading volume of salsa from mainland visitors did not rise and fell, down by 3.4%, reflecting that the average unit price of consumption power also fell by 3.6%.

Sasha explained that mainland customers’ spending has become more cautious, resulting in less-than-expected sales. In addition to the Sino-US trade disputes and the continued fluctuations in the stock market, the high base effect was also one of the reasons for the poor performance. However, many local retailers all said that although the consumption of mainland tourists has weakened, the number of beneficiaries has increased significantly, which still drives the business to record moderate growth.

During the Lunar New Year’s Day from the Lunar New Year’s Day to the beginning of the seventh day (February 5th to 11th), Sa Sa’s retail sales in Hong Kong fell by 5% compared with the same period of last year. The overall transaction volume decreased by 2.8%. The transaction volume of mainland and local customers was respectively The year-on-year decline was 3.4% and 1.6%; the overall transaction price fell by 2.3%, with the average unit price of mainland visitors falling by 3.6% and local customers by 3%.

The last season has turned worse.

In the face of continued weak sales, Sasha has also changed, saying that it will focus on the current lack of consumer confidence and changes in shopping behavior, and strengthen promotion to stimulate business, including the launch of a number of concessions with the payment platform. At the same time, in response to market conditions, Sasha improved procurement sources, introduced high-volume popular new products, and reduced low-productivity products to reduce inventory costs and improve efficiency.

Sasha’s last fall in sales in New Year was in 2016, when Hong Kong and Macau retail sales fell by 20% [map], mainly affected by the decrease in mainland visitors to Hong Kong; but with the rebound in the number of mainland visitors in recent years, the 2017 and 2018 Chinese New Year business Continued rebound, rising 3.5% and 16% respectively.

It is worth noting that in the third quarter of this financial year (ie October to December last year), the retail sales of Hong Kong and Macau have unexpectedly fallen by 2.8%, of which the December decline has expanded to over 10%. At that time, management had explained to analysts. Painting means that in addition to the impact of the macro environment and the depreciation of the renminbi, it also mentions two industry-specific factors: including the opening of a large number of pharmacies in recent years, diluting their business; and the impact of the mainland’s crackdown on purchasing activities is larger than expected. In the market analysis, one of the major competitors is Longfeng, a pharmacy leader. The company has been actively expanding in Mong Kok and Tsim Sha Tsui in recent years. At present, there are 17 branches in Hong Kong.

Chow Sheng Sheng wins expectations, business is 16% more

As for other major retailers, the performance is not bad. Department stores and jewellery goldsmiths all said that the Spring Festival benefited from the sharp increase in mainland visitors to Hong Kong, driving the flow of shoppers. Zhou Shengsheng (00116) Liu Kebin, general manager of Greater China Operations, said that thanks to the opening of the high-speed rail and the Hong Kong-Zhuhai-Macao Bridge, the number of mainland visitors to Hong Kong increased. The number of shop visitors from the first day to the sixth day increased by 25% to 26%, of which seven to eight became Mainland visitors, before conservatively expecting the number of new-year business to grow in the new year, ultimately outperformed expectations, business volume increased by 14% to 16% year-on-year.

Deng Juming, chairman of the Prince Jewelry Watch, revealed that during the Spring Festival, the number of shop visitors increased by 20%, but the consumption habits of mainland customers changed and the purchasing power weakened, so the business only increased by 1.8%. He said that apart from the impact of Sino-US trade disputes, mainly after the implementation of anti-corruption measures in the Mainland in the early years, eight to 90% of the large-scale purchase of luxury goods has disappeared. At present, mainland consumers are mainly engaged in the purchase of about eighty or ninety. Tens of thousands of products.

Pan Fuquan, the financial controller of Lifu International (01212), which manages Sogo Department Store, also mentioned that during the Spring Festival, the business was not too hot, but it was still “going to go”. The business of jewellery, brand-name products and cosmetics was ideal, and the number of outlets in Tsim Sha Tsui increased by one year. Cheng, the performance is better than that of the Causeway Bay branch. He thinks that it may be caused by more Hong Kong people traveling during the New Year.