OmniaLuo Inc, a China-based company engaged in the business of designing, developing, marketing and distributing fine women's apparel under the brand name OMNIALUO, announced that it remained on pace in February to meet its 2008 strategic goals by opening an additional store, thereby gaining a vital foothold in another major metropolitan area. Specifically, February's new store opening contributes to achieving the following:
Store Count Growth: This latest store brings the total number to 187, an 89% year-on-year increase over OmniaLuo's 99 total stores in February 2007.
Consistent Net Margin Improvement: Co-owned with a franchisee, stores of this type can achieve store level net profit margins of 40%-50%; stores wholly owned by the Company typically record net margins of 20%-40%. And while the new store is co-owned, OmniaLuo will retain 70% of revenue generated.
Major Market Introduction and Awareness: The new store is the Company's first in Chansha, the capital of Hunan province. Chansha has a population of over 6 million and is ranked as one of China's top 20 economically advanced cities.
It has enjoyed 14% annual GDP growth since 2001 (national average: 9%), and its average household income is 15% higher than the China norm. Chansha precisely fits OmniaLuo's target market criteria as an increasingly urban, sophisticated and affluent metropolitan area.
Moreover, the new store comes during the month of the Chinese New Year, a historical commercial "dead zone" for nearly all Chinese companies.
"With ten business days lost to the national Chinese New Year holiday in early February, we are pleased to have nonetheless added a higher-margin store in a coveted market," stated Cindy Luo, OmniaLuo Chairwoman and CEO.
"Our goal remains to grow to 264 by the end of 2008, and we are on pace to achieve that. While our store count grew by one in February, our entry into Chansha represents a significant step for OmniaLuo and positions us for additional growth, both in this new market and beyond."
