Sa Sa International Holdings Ltd. said Feb. 21 that it plans to close all its stores in Taiwan by March 31 to focus on its e-commerce business as well as its operations in mainland China, Hong Kong, Macau, Singapore and Malaysia.
The cosmetics chain's performance in the country has been "persistently weak" for six years, according to the release. For the 10 months ended Jan. 31, 2018, Sa Sa's earnings decreased 11.5% in local currency terms year over year to HK$154.3 million.
"The group took measures to reorganize the management team of its operations in Taiwan to enhance operational efficiency and reduce costs and with the aim of narrowing its losses, but the results were unsatisfactory," the company said in a statement, adding that the 260 affected workers will be compensated according to local labor laws.
Sa Sa said its exit will result in a loss but will not create a significant dent in the group's overall financial performance as Taiwan accounts for only a small portion of its income. For the six months ended Sept. 30, 2017, the Taiwan market accounted for 2.5% of the cosmetic retailer's turnover.