Sasa International, a leading drugstore in Asia, will shut all 22 stores in Singapore.
Six consecutive years of losses
The group had tried to improve sales by restructuring its local management team, enhancing store display and product mix, but still failed to turn the business around. In the six months ended 30 September, the Singapore operations reported S$17.3m (US$12.7) of sales, a drop of 4.6% from last year. About 170 employees in Singapore will be affected by its closure. Its management team for Singapore and Malaysia will continue to manage its business in Malaysia.
Focus shifting to Hong Kong, China and online
The retailer will concentrate on its core business in Hong Kong, which had been impacted by a significant drop in Chinese tourists. It is looking into further expansion in mainland China and accelerating its ecommerce business to make up for the lower revenue.
"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," said a spokesperson for the retailer.
Retail Analysis Asia