Cosmetics retail company Sasa International announced on Monday that it will close all of its 22 stores in Singapore due to losses incurred over the past six years. The retailer also explained that it will fully compensate the employees affected.
The cosmetics retailer has around 170 employees spread across the city-state but they will receive the necessary compensation based on Singaporean regulations, Channel News Asia reported. On the other hand, the company admitted that it has recorded losses over the past years.
For the first six months of the year, Sasa International recorded a decline of 4.6 percent in its operational profits, posting only S$17.36 million in revenue. The company explained that it did take all measures to "restructure the local management team."
Other efforts taken to improve business operations include the enhancement of store display through mixing in some products. The target was to drive sales but "the results were far from satisfactory."
Sasa then explained that it took "careful consideration" before the decision was made. Unfortunately, Singapore stores will be shut down to help enhance the profitability of other stores around the world.
Regarding the real estate and leases existing in the city-state, the cosmetics group noted that the management team has already spoke with landlords to close down shops as soon as possible.
While Sasa International is set to exit Singapore, some industry analysts are expecting the cosmetics firm to start pouring more attention on the Malaysian market as well as other regions in China.
According to the Straits Times, the company said it will work one expanding throughout mainland China since business in the Hong Kong area has also been impacted with the decline.
The company clarified that while Singapore shops will close, the closures will not have a significant effect on business as a whole. The cosmetics retailer still has over 240 stores around the world.
Another aspect of business that Sasa International is expected to put more focus into is e-commerce innovations. The company is currently eyeing growth potentials in several aspects to help curb the losses in its Singaporean business.
With around 700 brands under the retailer, it is expected that the company will continue to try attracting female millennials in Malaysia and other Asian business locations. The efforts in reaching out to millennial Malaysian consumers include a partnership with FCB Kuala Lumpur.
The collaboration will feature a new platform that features new content weekly that will help millennial consumers have more knowledge about make-up and skincare. Among the local beauty influencers that Sasa tapped for the project are Adlina Suhaimi, Nisha Ezzati, and Elcah Hasha.
