Yesterday, China Jo-Jo Drugstores, Inc. announced that the company will be opening a new store in Shanghai. This will be the first China Jo-Jo store in the affluent Southeast China city, and Jo-Jo has plans to open more.
The China Jo-Jo Drugstores chain sells Western as well as traditional Chinese medicines and nutritional supplements prescription/over the counter drugs, sundries, and medical devices. The chain also offers on-premises physician consultations. Jo-Jo currently runs 50 stores in the Zhejiang Province in addition to the new Shanghai store. The Company operates through its contractually controlled affiliates Hangzhou Jiuzhou Grand Pharmacy Chain Co., Ltd., Hangzhou Jiuzhou Clinic of Integrated Traditional and Western Medicine General Partnership, and Hangzhou Jiuzhou Medical & Public Health Service Co., Ltd.
The 3,000 sq. ft. Shanghai store will operate under the Lydia Drugstore name, as will the other ten locations Jo-Jo intends to open in Shanghai. This is to meet the local requirements for a chain drugstore. Jo-Jo also plans to have each store staff physicians on site and to obtain Shanghai medical licenses.
Mr. Lei Liu, Chairman and CEO of Jo-Jo Drugstores, stated, “We are excited about the opportunity to develop a presence in the Tier I city of Shanghai, which is recognized as an international gateway to China. With Shanghai’s population approaching 20 million and per capita spending among the highest in China, the demographics are compelling. While operating costs are greater in Tier I cities, this will be offset by higher price points, which will allow us to maintain our strong gross profit and operating margin levels. We are confident that our proven operating model, including China Jo-Jo’s unique pharmacy-physician service offerings, will enable us to profitably capture market share.”