Maison Solutions Eyes Further Growth Opportunities
Maison Solutions, a four-unit retailer in Southern California focused largely on serving Asian consumers, said it continues to explore acquisition opportunities after its recently announced the purchase of the three-unit Lee Lee International Supermarket chain in Arizona.
In a conference call for media and investors last week, Chris Zhang, vice president of corporate development and strategy, Maison Solutions, said the company continues to look for established retail stores in areas that have large or growing Asian populations. Acquisitions are a core element of the company’s strategy for growth, he said.
“If there's a good location, and the store is profitable, we certainly will take a serious look and perhaps we will move forward if we see a good opportunity,” he said.
Maison Solutions said earlier this month it had acquired the three Lee Lee International Supermarket stores for $22 million, and that they would add $76 million in annual revenues, effectively doubling Maison Solutions’ sales. In California, Maison Solutions operates four stores under the HK Good Fortune banner, and also owns a 10 percent stake in import/export wholesaler Dai Cheong Trading Co.
The company plans to retain the Lee Lee International Supermarket banner on the three Arizona stores, as well as that company’s management and store-level personnel, Zhang said. The acquired stores include a 60,080-square-foot location in Peoria, near Phoenix; a 52,224-square-foot store in Chandler, also near Phoenix, and a 51,422-square-foot store in Tucson.
The acquired company has been profitable for the past three years, Zhang said.
“Profitability is a major criterion we take into consideration when exploring [merger and acquisition] opportunities,” he said. “Additionally, the Lee Lee international Supermarket brand has cultivated an esteemed reputation over its nearly three-decade presence … in Arizona.”
Maison Solutions plans to implement operational improvements and install updated technologies at the acquired stores, and will also seek to centralize the supply chain, Zhang said.
“Both entities cater to the same target demographic and offer similar product lines, which establishes a solid foundation for leveraging the partnership with Dai Cheong Trading Co.,” he said.
Maison Solutions described Lee Lee International as the largest international market in Arizona, offering products from “more than 30 countries and regions.” Although it is largely focused on serving the local Asian population, the company lists products on its website not only from several Asian countries, but also foods from Africa, Central and South America, Europe, Australia, New Zealand, the U.S., and Canada.
The areas of Arizona where Lee Lee operates have favorable demographics, Zhang said, noting that Arizona’s Asian population has increased more than 51 percent from 2010 to 2022.
In addition, the Taiwan Semiconductor Manufacturing Co. is scheduled to open a massive manufacturing facility in the Phoenix area in 2025, which Zhang said could be a catalyst for further growth of the Asian population in the area.