SINGAPORE: Cosmetics retailer Sasa International announced on Monday (Dec 2) that it will close all 22 stores in Singapore.
About 170 employees will be affected by the decision, the company said in its statement, adding that they will be "fully compensated" according to local employment laws and regulations.
"The Group's performance in Singapore has been less than satisfactory for many years, and has recorded losses for six consecutive years," Sasa said.
In the six months ended Sep 30, the Group’s turnover for the Singapore operations was S$17.36 million, a decline of 4.6 per cent.
“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,” it added.
Sasa said it has decided to concentrate its resources on the markets in Hong Kong, Macau, mainland China and Malaysia, as well as its e-commerce business.
The retailer added that its core market in Hong Kong has taken a hit due to a "drastic decline in Mainland tourist arrivals".
"After careful consideration, the Group believes that the closure of its business in Singapore will help improve the performance and profitability of its remaining businesses, and is in the best interests of the Group and the shareholders as a whole," the company said.
It added that 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.
The company's management team in Singapore will commence negotiations with landlords of the stores with a view to closing them "as early as possible", Sasa said.
The Group’s cash and bank balances were S$137.71 million as of Sep 30, which it said were adequate for its operational needs.