Explosive Growth: Luckin Coffee Revenue Skyrockets by 50% as 3,000 New Stores Open Worldwide
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In the third quarter, China’s Luckin Coffee Inc. experienced a significant revenue boost, supported by an impressive number of new store openings. The chain saw its total net revenue surge by 50.2% year-on-year to RMB15.287 billion (US$2.14 billion) by the end of September. This boost primarily resulted from an increase of 48.1% in gross merchandise value, following a 47% growth in the second quarter.
Store Expansion and Revenue Boost
Luckin Coffee Inc. added 3008 new outlets to its chain during the third quarter, including 2979 stores in China, five in Singapore, 21 in Malaysia and three in the United States. This growth brought the total number of stores up to 29,214, comprising 18,882 self-operated stores and 10,332 partnership locations.
The coffeeshop chain saw same-store sales in self-operated outlets rise by 14.4%, while the number of average monthly transacting customers grew by a substantial 40.6%.
A Successful Strategy
Jinyi Guo, Luckin’s co-founder and CEO, credited the company’s positive performance to its strategy of scale expansion. He noted that the expanding store network had improved the chain’s fulfilment capabilities, allowing it to meet growing customer demand successfully. The company also reached a significant milestone, surpassing 100 million average monthly transacting customers for the first time. According to Guo, these achievements further solidified Luckin’s competitive edge and market leadership position.
While the company’s operating income grew by 12.9% to RMB1.776 billion, there was a slight decrease of 2.7% in net income, which totaled RMB1.278 billion.
Questions & Answers
What was the total net revenue of Luckin Coffee Inc. in the third quarter?
The total net revenue of Luckin Coffee Inc. in the third quarter was RMB15.287 billion (US$2.14 billion).
How many new stores did Luckin Coffee Inc. open in the third quarter?
Luckin Coffee Inc. opened 3008 new stores in the third quarter.
What was the growth rate of average monthly transacting customers for Luckin Coffee Inc.?
The number of average monthly transacting customers for Luckin Coffee Inc. grew by 40.6%.