BEIJING, Sept. 4 /PRNewswire-FirstCall/ - Good Life China Corporation www.goodlifechina.com (GLCC) is pleased to announce that the acquisition of Shijiazhuang based "The People Home" (TPH) chain of 625 stores has been successfully closed.
The acquisition is a very significant one, from both a top-line revenue point of view, and in terms of achieving ever-growing economies of scale on the logistics side of the retail business - which is the core focus of Good Life's business model. Additionally, the acquisition significantly expands Good Life's retail level footprint in China, and may signal the first signs of consolidation of retailers in rural areas of China.
TPH has a total of over 600 stores, carrying a variety of low-cost consumer products. With the addition of TPH, Good Life now boasts a total of over 3,300 stores.
The addition of TPH also broadens the number of suppliers that will be tied in to Good Life's advanced warehousing and logistics capabilities. Expanding the supplier side of the retail distribution channel is as important to Good Life as the expansion of its retail locations - as the Company generates revenues from both sides of the retail equation.
Good Life CEO, Dong-Mei Jia, noted, "This is a very exciting development for the Company. We had established an objective of 4,000 retail locations by the end of 2008, and we have a good chance of meeting that objective.
We also believe that we can improve the operating efficiencies of TPH, and increase the level of profitability by lowering costs on the supply-side by way of volume discounts due to the consolidation, as well as reduced warehousing and distribution costs through utilization of Good Life's 'best of breed' logistics capabilities."
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Certain forward information contained in this release contains forward-looking statements that involve risk and uncertainties, including but not limited to, those relating to development and expansion activities, domestic and global conditions, and market competition.
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