China Nepstar Chain Drugstore Ltd.
Chin Nepstar is China's largest retail drugstore chain based on the number of directly operated stores. Nepstar uses directly operated stores, centralized procurement and a network of distribution centers to provide its customers with high-quality, professional and convenient pharmacy services and a wide variety of other merchandise, including OTC drugs, nutritional supplements, herbal products, personal care products, family care products, and convenience products including consumables.
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China Nepstar acquires eight stores in Wenzhou
China Nepstar Chain Drugstore (NYSE: NPD) announced that it has entered into a definitive agreement with Wenzhou Ren Ren Hao Chain Drugstore Ltd to acquire the operations of all of its eight drugstores in Wenzhou City.
China Nepstar Chain Drugstore Ltd is China's largest retail drugstore chain. The Company has approximately 2,300 stores across 64 cities. The Chinese retailer uses directly operated stores, centralized procurement and a network of distribution centers to provide its customers with high-quality, professional and convenient pharmacy services and a wide variety of other retail products, including OTC drugs, personal care products and convenience products including consumables.
The acquisition represents China Nepstar's first retail presence in Wenzhou, one of the most affluent markets in Zhejiang province in terms of consumption power. The transaction is expected to be completed by the end of 2009.
Located on the east coast of China, Wenzhou is situated between the Yangtze River delta and Pearl River delta and is Zhejiang province's most inhabited city with a total residential population of approximately 8 million. Together with the cities of Hangzhou and Ningbo, Wenzhou is one of the key contributors to the GDP of Zhejiang province, which is one of China's top three economic growth regions.
China Nepstar has 186 stores in Hangzhou and 178 stores in Ningbo, and holds the largest market share in each of these markets. Ren Ren Hao generated unaudited revenues of approximately RMB 17 million in 2008. The eight Ren Ren Hao drugstores have an average store size of 250 square meters and are located in the city center or in prime locations in nearby major townships.
China Nepstar CEO, Mr. Ian Wade commented on the pharmacy retailers expansion in the affluent region of the People's Republic of China:
"This acquisition represents our continued penetration in affluent provinces in China. With a well-established customer base and brand awareness in the other large cities in Zhejiang province, this entry into the Wenzhou market lays the foundation for extending our market leadership in eastern China. We plan to further expand in Wenzhou through a gradual ramp-up in new store openings and selective acquisitions."
Other China Nepstar Chain Drugstore Ltd. news
- Drugstore chain China Nepstar same store sales climb 7% in first quarter
2010-05-19 - Drugstore Nepstar moves into Beijing with five stores
2009-07-14
