DA QING, China, Oct. 29 /Xinhua-PRNewswire/ -- QKL Stores Inc. (the "Company") (OTC Bulletin Board: QKLS), a leading regional supermarket chain in Northeast China, today announced the opening of two new supermarkets in Heilongjiang Province.
The Company's first new supermarket is situated in Taikang, China, which is approximately 30 kilometers from Daqing and has a population of 100,000 people. As the only modern supermarket in the area, this store location has the potential to attract an additional 300,000 customers living in the adjacent 15 villages. This supermarket opened its doors on September 28, 2008, and is the Company's second unit comprised of a supermarket and department store. It occupies roughly 108,000 square feet of leased space (the supermarket is approximately 30,000 square feet and the department store is nearly 78,000 square feet) in the commercial center of the city.
The second new supermarket, the Central Street Store located in west Daqing, China, opened its doors on September 30, 2008. This new supermarket is located in the commercial and residential center of Ranghulu Daqing, a high income population area. The supermarket occupies approximately 86,000 square feet on two floors of leased space and carries a wide variety of grocery, fresh food and non-food products. This location contains a higher percentage of non-food products, such as electronics and high-end apparel, to address the needs of our higher income customers. Since the grand opening, the Central Street Store has averaged 7,000 transactions daily at a
per-basket average that is approximately 30% higher than the Company's average store.
Mr. Alan Stewart, Chief Operating Officer, commented, "This is a very exciting time for QKL Stores. We are pleased to have recently opened two new stores including one of our larger format hypermarkets. We continue to focus on maximizing sales and expanding our margin opportunity by opening new supermarkets in central locations that contain a diversified and unique selection of grocery, fresh food, and non-food products. We plan to open six additional new stores by the end of the year, with three slated to open in November and another three scheduled to open in December."
Mr. Zhuangyi Wang, Chairman and Chief Executive Officer, said, "We at QKL Stores continue to focus on providing our customers with fresh, high quality products at attractive prices. With the addition of these two new supermarkets, we currently operate 25 stores comprised of 22 supermarkets, 2 department stores and 1 convenience store, for a total of 1.0 million square feet of space. The new locations in Daqing and Taikang warranted larger stores, and the supermarkets are resonating well with the consumer audience. We will continue to determine new store size on a location-by-location basis and will open supermarkets in selective locations based on each individual market area. We remain confident in our expansion strategy and look forward to furthering our success in the final quarter of this year."
About QKL Stores Inc.
Based in Daqing, China, QKL Stores Inc. is a leading regional supermarket chain company operating in Northeast China. QKL Stores sells a broad selection of merchandise, including groceries, fresh food, and non-food items, through its retail supermarkets, convenience store, and department store; the company also has its own distribution centers that service its supermarkets.
Safe Harbor Statement
Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. The forward looking statements are subject to a number of risks and uncertainties including market acceptance of the Company's services and projects and the Company's continued access to capital and other risks and uncertainties. The actual results the Company achieves may differ materially from those contemplated by any forward-looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements.
For further information, please contact:
Company Contact:
Rhett Xudong Wang
QKL Stores Inc.
Tel: +86-45-9460-7987
Investor Relations in the U.S.:
Abbie Gellman
Tel: +1-203-682-8200
Investor Relations in Asia:
Bill Zima & Annie Chen
Tel: +86-10-8523-3087
