SINGAPORE (ANN): All 22 Sasa International shops in Singapore will be shut down, the cosmetics retailer announced on Monday (Dec 2) and focus on Malaysia where its sees a higher potential for further development.
The latest move is part of Sasa's strategy to focus on its core market in Hong Kong, which has become more difficult due to a drastic decline in mainland China's tourist arrivals, the cosmetic retailer added.
It said its decision came after its stores in Singapore recorded losses for six consecutive years despite its efforts to turn the business around.
"In order to improve the performance of the Singapore market, the group had taken measures in recent years to restructure the local management team and to enhance store display and product mix with a view to driving sales.
"Regrettably, the results were far from satisfactory," Sasa said in a statement.
Sasa said the 170 employees affected will be fully compensated according to Singapore's employment regulations.
To make up for the loss in the Singapore market and the declining business in Hong Kong, Sasa said it will continue to expand in mainland China, as well as accelerate the development of its e-commerce business.
It said that it remains a viable business with sufficient funds for operations.
"The termination of the leases in Singapore is not expected to have any significant impact on the operations of the group, as the group operates a total of 265 stores, only 22 of them are located in Singapore," it said. - The Straits Times/Asia News Network