Last month, Hong Kong and Macau same stores fell 39%
Mainland visitors to Hong Kong have been greatly reduced, which has greatly slammed Sa Sa International ( 0178 ). After the profit in the first half of the fiscal year, the Group revealed at the analyst meeting that it will close 30 Hong Kong stores in the coming year and will concentrate. In the Mong Kok Districts such as Tsim Sha Tsui, Mong Kok and Causeway Bay, the owners will consider at least 50% reduction in rents in future negotiations. They will also emphasize the shift of their business focus to the South China region. The Group did not respond positively to the layoffs in Hong Kong. It only indicated that it would help the employees in the same boat.
Ming Pao reporter Xiao Jiacong
Sasha, who has issued a profit warning recently, announced yesterday’s interim results as of the end of September. During the period, the profit was turned into a loss, eroded 36.53 million yuan, and the basic loss per share was 1.2 cents. Sasha first mentioned in the performance report that Hong Kong’s operating environment is extremely difficult. In order to strive for survival, the Group actively reduced rent expenses, including reducing the number of stores, and continued to require owners to reduce rents. The primary goal is to restore the profit contribution of the store as soon as possible.
Reducing rent expenses and resuming store profit contribution as soon as possible. Analysts revealed that the management said in the performance conference call that there are currently 118 stores in Hong Kong, and 30 stores will be closed in the next year to discuss at least 50% reduction in rents for owners. For consideration. However, the management also revealed that even if some owners are willing to reduce the rent by 50% to 60%, they will still “calculate the number” and may ruin the money. Therefore, they will not rent again. The closed stores will be mainly located in the Wang District, such as Tsim Sha Tsui, Mong Kok and Causeway Bay. Some analysts expect that this will surprise the market. Although it can reduce a lot of costs, the turnover will not improve. The measures are like “a drop in the bucket”.
Said to work with the employees in the same boat, strictly control the manpower
The newspaper asked Sasha whether it would lay off employees in response to the closure of the store. The Group responded that despite the adverse market environment, it will work with its employees and is actively taking measures to secure reasonable income for the group and frontline employees who are paid by the commission system. Through the natural loss, we will strictly control the manpower of each department. According to the data, the total number of employees of the group as of the end of September was 4,500, a decrease of 200 from the end of March this year.
The management also revealed at the analyst meeting that the recent response to their own products is good, and the past preferential measures have reduced the storage of used goods, and the gross profit margin is expected to rebound. As the mainland has a good same-store sales growth, the future business focus will be placed in the South China region.
The focus of the future is placed in southern China
In the first half of the year, the Group’s turnover decreased by 15.7% to 3.494 billion yuan. The retail sales of Hong Kong and Macau markets fell by 19.4% year-on-year to 2.814 billion yuan. The number of transactions of Hong Kong shops from mainland China visitors decreased year-on-year in July-September. It reached 51.2%. The gross profit margin was 38%, down 2.2 percentage points year-on-year. After the group announced its results yesterday afternoon, it closed at a low level and reported 1.8 yuan, down 3.74%.
The Group also announced its operating data from October 1 to November 18, during which the turnover fell by 31.6% year-on-year, of which retail sales in Hong Kong and Macau fell by 39.4%, same-store sales fell by 39.1%, and retail sales in the Mainland fell by 0.3%. Sales rose 13%. Some analysts pointed out that Sasha closed the poorly performing stores in the Mainland during the period and quoted management’s expectation that the mainland business could turn a profit in the next fiscal year.
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minimum reduction of rent by 50%
In the future, rent renewal will be reduced by at least 50%, but some shops will be eclipsed if they are reduced by 60%, so they will close.
Gross profit margin is expected to increase
The sales of their own products are good, and the future gross profit margin is expected to rebound.
Focus on developing the mainland
The situation in Hong Kong is grim, and the same-store sales in the Mainland have double-digit increases. The future development will be concentrated in South China.