QKL Stores Inc., aregional supermarket chain in Northeastern China and Inner Mongolia plans to open new stores this year in Heilongjiang Province.
Zhuangyi Wang, Chairman and CEO, QKL Stores Inc., said the company has stronger relations with local vendors and cost of goods is slightly lower than the two other provinces – Liaoning and Jilin – where it now operates.
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 centers that service its supermarkets.
"As QKL expands its market presence in northeast China, we are uniquely positioned against our local competitors through our large product offering, strong supplier relationships, efficient distribution network and state-of-the-art IT system. We are comfortable with our opportunities in the second half of the year and believe we’ll see an improvement in operating expenses and net result from the current quarter," Wang said.
In the second quarter, QKL Stores reported that sales decreased by USD7.3 million (12.4 percent) to USD51.7 million. Gross profit, or total revenue minus cost of sales, also decreased by USD1.4 million (14.3 percent) to USD8.7 million ( 16.8 percent of net sales.