QKL Stores Inc, a leading regional supermarket chain in Northeast China, has posted revenues of $66.1 million for the second quarter ended June 30, 2010 – a 29.5 per cent increase from the $51 million posted in the corresponding quarter a year ago.
The Q2 gross profit increased 27.8 per cent to $11.6 million, while the quarterly same store sales increased 13.9 per cent.
Zhuangyi Wang, chairman and CEO, said, “Our sales performance in the second quarter continued our long-term trend of strong quarterly same store sales growth. Operating expenses were generally in line with where we expected them to be, given our store expansion efforts in the coming months.”
He further said, “The opening of our new 19,600 sq.mt distribution centre in the second quarter should result in future gross margin growth by facilitating our expansion of direct grocery and non-food purchases from manufacturers, the growth of our private label business and larger purchases of a wider variety of fruits and vegetables from local farmers.”
As of June 30, 2010, QKL Stores Inc operated 37 stores. The company remodelled two existing stores and closed one store in the second quarter of 2010.
Wang continued, “We remain comfortable with our goal of opening 20 new stores in 2010. We are working diligently on our expansion plan, and are satisfied with our current progress. Most of the stores under our store opening plan will be completed by the fourth quarter of this year. By the year-end, we expect to have a total of 55 stores occupying an aggregate of 260,000 sq.mt space.”
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, hypermarkets and department stores; the company also has its own distribution centres that service its supermarkets.
– IndiaRetailing Bureau