Hong Kong-based cosmetics retailer Sa Sa International Holdings (Sa Sa) is planning to close all its stores in Taiwan by the end of March in order to improve overall business performance.
The store closures come after the company has recorded losses for six consecutive years in Taiwan.
Around 260 employees would be affected by the decision and the company noted that they will be compensated according to local labour regulations.
It is reported that for the ten months ended 31 January 2018, turnover of the company’s operations in Taiwan decreased by 11.5% in local currency terms year-on-year to HK$154.3m ($19.7m).
Sa Sa chairman and chief executive officer Dr Simon Kwok said: “The group’s performance in Taiwan has been persistently weak, and the possibility of improvements is low into the foreseeable future.
“Having considered the interests of the group and the shareholders, we decide to close our business in Taiwan so that we can concentrate our resources on other markets and businesses.
“Sa Sa will rationalise its resources to gear up for opportunities in the remaining markets. The move underlines our determination to strive for better returns to the shareholders.”
The company currently intends to concentrate on other markets, including mainland China, Hong Kong, Macau, Malaysia and Singapore, as well as its e-commerce business.
The company said the economy and retail sectors of Hong Kong, Macau and mainland China will benefit from the opening of an express rail line connecting Hong Kong to Guangzhou and Shenzhen, China, as well as a bridge linking Hong Kong to Macau and Zhuhai.
According to the company, the closure of its Taiwanese business will help improve its overall business performance and resource utilisation, as well as serves the best interests of the group and the shareholders as a whole.