QKL Stores, Inc. (QKL) is a regional supermarket chain that, as of December 31, 2011, operated 34 supermarkets, 16 hypermarkets and four department stores in northeastern China and Inner Mongolia. The Company�s supermarkets and hypermarkets sell a selection of merchandise, including groceries, fresh food and non-food items. A supermarket offers various daily necessities on a self-service basis and averages 2,500 square meters in sales area. As of December 31, 2011, the Company had three distribution centers servicing its supermarkets. The Company's supermarkets carry merchandise divided into three categories: grocery, fresh food and non-food items. The Company's supermarkets generated approximately 98.6% during the year ended December 31, 2011. As of December 31, 2011, the Company's supermarkets had a total area of approximately 287,865 gross square meters, which includes all rental space as opposed to 142,103 square meters of retail space.