Hong Kong's Sa Sa posts sluggish sales during China's Golden Week
Oct 9 (Reuters) - Hong Kong-based cosmetic retailer Sa Sa International Holdings Ltd said sales during China's Golden Week break were lower than its expectations, as some mainland Chinese tourists ditch Hong Kong to opt for other holiday destinations.
Sa Sa, known for its wide range of face creams and moisturisers, saw its retail sales rise 11 percent during China's National Day holidays from Oct 1-7, it said in a statement on the Hong Kong stock exchange on Wednesday.
"The growth in retail sales performance in Hong Kong and Macau during the National Day Golden Week Holiday was slightly lower than the past and the group's expectation," Sa Sa said.
"The group remains cautiously optimistic on the retail market in Hong Kong and Macau."
Sa Sa and smaller rival Bonjour Holdings Ltd's stores in Hong Kong are usually packed with Chinese tourists snapping up face masks, perfumes and other cosmetics as the products are sold at relatively lower prices compared to most other retail outlets.
However, as Chinese tourists become increasingly well travelled, more are picking other holiday destinations, leading to weaker tourist arrivals in Hong Kong, Sa Sa said.
Sa Sa's announcement came a day after another Hong Kong company, furniture firm Man Wah Holdings Ltd said its Golden Week sales in China were up a strong 43.7 percent, helped by advertising and promotions by celebrities. (Reporting by Lee Chyen Yee in SINGAPORE and Meg Shen in HONG KONG; Editing by Elaine Hardcastle)
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