Chinese supermarket operator QKL remains bullish despite an unsatisfactory performance in the first quarter.
While it reported 11.4 per cent decline in its revenue for the months to March, it expects profitability to return in the remaining months of the year.
“We expect our profitability to improve as we benefit from our improving new store sales, increased same store sales at existing stores and reduced store opening and promotional expenses,” said CEO Zhuangyi Wang.
Same store sales generated approximately $81.8 million in the first quarter, a decrease of $12.6 million, from 2013’s $94.4 million.
It blamed tougher competition for the decline. QKL finished the first quarter operating 47 stores, comprising 27 supermarkets, 16 hypermarkets and four department stores.
It plans to open two new stores in the second half of the year.