QKL Stores, a supermarket chain in Northeastern China and Inner Mongolia, will open two additional stores this year despite losing $3.8 million in the second quarter.

According to chairman and CEO Zhuangyi Wang, the two new stores will be located in the Heilongjiang Province where they have stronger relationships with local vendors and the cost of goods is slightly lower than Liaoning and Jilin provinces in which they operate.

The retailer said net sales declined 12.4 per cent to $51.7 million for the three months ended June 30.

Same store sales were approximately $49.6 million, 7.1 per cent lower than last year.

Operating 46 supermarkets, hypermarkets and department stores, QKL Stores plans to focus on providing customers with low prices to increase market share and long-term sales volume amid China’s competitive supermarket industry.