$GPOX News: GPOPlus+ Shareholder Update
Highlights:
560% Year over Year revenue growth. Reporting $4.35 million annual revenue.
Deployed proprietary AI-powered technology platform PRISIM+ - Predictive Route Inventory + Service Management - designed to optimize GPOX operations.
Expanded DSD distribution in three service areas with three new distribution Mini-Hubs
Expanded retail network adding TXB Stores - Texas Born - convenience stores with 52 locations.
LAS VEGAS, NV / ACCESSWIRE / December 6, 2024 / GPO Plus, Inc. (OTCQB:GPOX ), an AI-powered Distributor revolutionizing distribution to gas stations and convenience stores with its innovative technology-driven Direct Store Delivery (DSD) model, is proud to provide this shareholder update reviewing accomplishments and new initiatives to drive recurring revenues for sustainable growth.
The focus for GPOX over the past year was getting really good at Direct Store Delivery (DSD) - building systems, improving operations, integrating AI tools, refining our model, and expanding our market presence - solidifying our position as a leader in the convenience store and gas station distribution sector.
GPOX seamlessly incorporated AI into their operations, embedding AI into our proprietary technology platform (PRISM+) to provide a state-of-the-art distribution service primarily to convenience stores and gas stations. This integration was an organic step in our evolution, driven by the clear advantages AI offers in optimizing logistics, inventory management, and overall scalability. Our advanced distribution service, which is focused on convenience stores and gas stations, benefits directly from this forward-thinking approach. We grow by adding retail stores to our network and distributing more products to these retail partners. This includes expanding the private label products that we manufacture to increase our margin greatly. As our network grows, our group purchasing power increases, as do our margins and profitability. Most of our competitors set up their systems decades ago, limiting their ability to take advantage of new technology and systems. This provides GPOX a competitive advantage to improve a business model that has fundamentally remained unchanged for over 40 years.
We are pleased to report Year over Year Growth of over 560% in our last Annual 10-K Filing. Increasing revenues to over $4.35 million in gross sales for the period ending April 30, 2024, as compared to $653,516 for the period ending April 30, 2023. This was accomplished in what we considered a building and development phase. GPOX is now moving into an accelerated growth phase and is ready to scale!
Initiatives to Drive Sustainable Growth
Upgrade Warehouses to Climate Controlled. We are upgrading our warehouse to ambient temperature-controlled facilities, meeting industry standards for sensitive product storage. This allows us to greatly expand our product categories. Our target with the new products is to increase annualized revenues by $3 to $5 million over the next year.
Expand Retail Network in Current Service Areas. By leveraging our existing routes, particularly in rural regions where stores are often miles apart, we aim to "fill in" along these established paths, maximizing routes and expanding our network. This strategy allows us to scale rapidly and cost-effectively, tapping into underserved markets that align with our operational strengths. In Texas alone, we believe this approach could quickly add over 300 new retail locations, significantly boosting our reach and revenue. Our target is to add 2,000 locations within our existing service areas.
Implement Call Center Sales Team. We are establishing a dedicated call center sales team focused on reaching independent stores, expanding retail categories such as smoke shops and liquor stores, and other potential customers within our service areas. These new retailers represent strong opportunities for distributing our products, particularly our high-margin private-label lines. Once established, industry benchmarks suggest potential sales of $50,000 to over $100,000 per seat monthly, and we aim to initially launch with five seats, scaling to fifteen as demand grows. We have an existing database of over 70,000 retail leads to provide our sales team with a robust starting point to build relationships and drive sales. This initiative is a cost-effective way to penetrate new markets, optimize our product reach, and significantly boost revenues while maintaining sustainable operations.
Convert Mini-Hub Locations to Cash and Carry. We plan to convert select Mini Hubs into dual-purpose facilities that function as both Mini Hubs and Cash and Carry locations. Mini Hubs are small, localized storage spaces that support one to four drivers, optimizing deliveries within a specific area. By transforming these spaces into Cash and Carry destinations, we create additional retail channels where our partners can purchase wholesale goods directly. This approach leverages the products we already stock at these locations, creating economies of scale by maximizing the utility of our existing storage spaces. Cash and Carry locations also allow us to offer drop-shipping services, expanding our reach beyond traditional DSD routes. This initiative provides convenience for smaller retail partners who may not qualify for regular DSD service and increases sales opportunities by bringing retailers to us. It's an efficient , scalable model that enhances revenue while maintaining operational flexibility. The goal is to increase both our retail network and product offerings, leveraging existing resources.
Mission and Target Markets
The GPO Plus mission is to be the leading nationwide DSD provider to convenience stores and gas stations. Typically, 80% - 85% of all the products you see in convenience stores and gas stations are delivered by just a few distributors. The remaining 15% - 20% is serviced by dozens of vendors and distributors, with primarily a drop-ship model. Many of these vendors and/or distributors are regional; the larger the convenience store/gas station chain, the fewer vendors they want to work with. Our focus is consolidating this 15% - 20% of highly fragmented products represented by many vendors and distributors. This is our Target Market, where we have a significant competitive advantage due to our large service area and weekly DSD service!
The opportunity within this sector also lies mainly in the in-store sales domain, which is growing in diversity and volume. As consumer preferences shift towards quick , accessible shopping for a broader range of products, convenience stores are uniquely positioned to meet these demands. This market dynamic presents a fertile ground for companies like GPOX looking to capitalize on the expanding role of convenience stores beyond traditional fuel sales, offering substantial returns on investments in enhancing in-store offerings and customer experience.
The convenience store and gas station industry in the United States is vast, with approximately 152,396 establishments generating nearly $860 billion in total sales. Within this landscape, independent retailers make up 63.1% of the market, highlighting a significant opportunity for GPOX to empower these businesses with the same level of service and pricing as large chains, which will help to provide them a competitive advantage in their service area.
This 15%-20%, anything from car chargers to flavored pecans, is a $50 billion market opportunity within the $327 billion in-store sales convenience store market. It is also a significant pain point for convenience stores having to manage supply chain headaches, minimum order requirements, excess inventory, sourcing and qualifying products. GPOX solves these problems with a data-driven, tech-enhanced DSD model, helping independent retailers maintain streamlined inventory and improved profitability.
The growth path is straightforward; more stores and more products equate to more revenue. The easy math is that $4.35 million in revenue equates to about $900 a month in sales per store. The next growth milestone is 1,000 stores generating over $2,000 a month in sales, and we see a clear path with our current infrastructure for growing to 5,000 locations . The other good news is that we already have a few stores grossing over $5,000 per month. We are an extremely focused company executing a plan with a refined model ready to scale.
Innovations + Technological Advancements
Our in-house AI-powered technology platform, PRISM+, is at the core of our operations. Designed to streamline the distribution process, PRISM+ supports efficient delivery, inventory management, data analytics, and overall operational excellence. It enables precise inventory tracking, optimizes delivery routes, and ensures accurate, timely fulfillment, reducing overhead costs and increasing profitability for GPOX and our partners.
AI-driven data analytics has been a powerful tool in optimizing our DSD operations, enhancing decision-making, and improving customer satisfaction. By analyzing delivery route data, traffic patterns, and historical delivery times, we have been able to identify the most efficient routes for our drivers, reducing fuel costs , delivery times, and vehicle wear and tear. Our advanced route optimization algorithms dynamically adjust routes in real time based on current conditions , ensuring timely deliveries and reducing the likelihood of missed or late deliveries.
Our strategic approach involves close collaboration with retailers to curate a tailored selection of fast-moving consumer goods (FMCG) that cater to the specific needs of their customer base. By visiting retail partners weekly, we ensure that shelves are consistently stocked with the most sought-after products, maintaining optimal inventory levels and maximizing retail success. This partnership extends to working directly with manufacturers and vendors, enhancing our product lineup, and, in some cases, creating our own branded products to fill market gaps.
Conclusion
As we look to the future, our commitment to excellence and growth remains steadfast. We will continue to refine our DSD model, leverage AI data analytics for optimal decision-making, and expand our product portfolio to meet the evolving needs of gas stations and convenience stores. Our focus on technology, innovation, and strategic partnerships will drive our growth and profitability, positioning GPOX as a key player in the convenience retail sector.
We would also like to take this opportunity to thank our shareholders for your continued support and trust in our vision. Together, we will navigate the challenges and seize the opportunities that lie ahead, ensuring sustainable growth and long-term success for GPOX!
For more information, visit GPOPlus.com and sign up for GPOXPulse to receive the latest updates on GPOX's growth and innovations.
Connect with us on social media to view live video updates, content, and general information about GPOX and its GPOs: https://gpoplus.com/social.
About GPOPlus+ (GPOX)
GPOX is an AI-powered Distributor revolutionizing the future of distribution to gas stations and convenience stores with its innovative AI-driven Direct Store Delivery (DSD) model. Our goal is clear and ambitious: "to build the largest nationwide DSD distribution company servicing gas stations, convenience stores, and beyond." Our technology-driven AI network, featuring strategically placed Regional Hubs and Mini Hubs , is designed to optimize efficiency and maximize reach. Central to our operations is our in-house AI technology platform, PRISM+. Designed to streamline the distribution process, PRISM+ supports efficient delivery, inventory management, data analytics, and overall operational excellence, enabling us to reliably and effectively meet the dynamic needs of our partners. Our mission is to consolidate the fragmented market segment managed by numerous regional vendors. Our dedication to excellence is evident in our product selection process, where we align offerings with consumer demand and partner with top-tier vendors and brands, ensuring our portfolio remains diverse and highly profitable.
For more information, please visit www.GPOPlus.com.
Information about Forward-Looking Statements
This press release contains "forward-looking statements" that include statements regarding expected financial performance and growth information relating to future events. Forward-looking statements include statements with respect to beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond the control of the Company and its officers and managers, and which may cause actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by which, that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in, or suggested by, the forward-looking statements. Important factors that could cause these differences include, but are not limited to; inability to gain or maintain licenses, reliance on unaudited statements, the Company's need for additional funding, governmental regulation of the cannabis industry, the impact of competitive products and pricing, the demand for the Company's products, and other risks that are detailed from time-to-time in the Company's filings with the United States Securities and Exchange Commission. All statements other than statements of historical fact are statements that could be forward-looking statements. You can typically identify these forward-looking statements through use of words such as "may," "will," "can" "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "seek," "estimate," "continue," "plan," "point to," "project," "predict," "could," "intend," "target," "potential," and other similar words and expressions of the future. The Company expresses its expectations, beliefs and projections in good faith and believes that its expectations reflected in these forward-looking statements are based on reasonable assumptions. However, there is no assurance that these expectations, beliefs and projections will prove to have been correct. Such statements reflect the current views of the Company with respect to its operations and future events, and are subject to certain risks, uncertainties and assumptions relating to its proposed operations, including the risk factors set forth herein. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, the Company's actual results may vary significantly from those intended, anticipated, believed, estimated, expected or planned. In light of these risks, uncertainties and assumptions, any favorable forward-looking events discussed herein might not be realized and occur. The Company has no obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. For a more detailed description of the risk factors and uncertainties affecting GPO Plus, Inc. GPOX, please refer to the Company's recent Securities and Exchange Commission filings, which are available at www.sec.gov. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
###
Contact Information
Brett H. Pojunis
Chief Executive
ir@gpoplus.com
855.935.GPOX (4769)
SOURCE: GPO Plus, Inc.
View the original press release on accesswire.com
Highlights:
560% Year over Year revenue growth. Reporting $4.35 million annual revenue.
Deployed proprietary AI-powered technology platform PRISIM+ - Predictive Route Inventory + Service Management - designed to optimize GPOX operations.
Expanded DSD distribution in three service areas with three new distribution Mini-Hubs
Expanded retail network adding TXB Stores - Texas Born - convenience stores with 52 locations.
LAS VEGAS, NV / ACCESSWIRE / December 6, 2024 / GPO Plus, Inc. (OTCQB:GPOX ), an AI-powered Distributor revolutionizing distribution to gas stations and convenience stores with its innovative technology-driven Direct Store Delivery (DSD) model, is proud to provide this shareholder update reviewing accomplishments and new initiatives to drive recurring revenues for sustainable growth.
The focus for GPOX over the past year was getting really good at Direct Store Delivery (DSD) - building systems, improving operations, integrating AI tools, refining our model, and expanding our market presence - solidifying our position as a leader in the convenience store and gas station distribution sector.
GPOX seamlessly incorporated AI into their operations, embedding AI into our proprietary technology platform (PRISM+) to provide a state-of-the-art distribution service primarily to convenience stores and gas stations. This integration was an organic step in our evolution, driven by the clear advantages AI offers in optimizing logistics, inventory management, and overall scalability. Our advanced distribution service, which is focused on convenience stores and gas stations, benefits directly from this forward-thinking approach. We grow by adding retail stores to our network and distributing more products to these retail partners. This includes expanding the private label products that we manufacture to increase our margin greatly. As our network grows, our group purchasing power increases, as do our margins and profitability. Most of our competitors set up their systems decades ago, limiting their ability to take advantage of new technology and systems. This provides GPOX a competitive advantage to improve a business model that has fundamentally remained unchanged for over 40 years.
We are pleased to report Year over Year Growth of over 560% in our last Annual 10-K Filing. Increasing revenues to over $4.35 million in gross sales for the period ending April 30, 2024, as compared to $653,516 for the period ending April 30, 2023. This was accomplished in what we considered a building and development phase. GPOX is now moving into an accelerated growth phase and is ready to scale!
Initiatives to Drive Sustainable Growth
Upgrade Warehouses to Climate Controlled. We are upgrading our warehouse to ambient temperature-controlled facilities, meeting industry standards for sensitive product storage. This allows us to greatly expand our product categories. Our target with the new products is to increase annualized revenues by $3 to $5 million over the next year.
Expand Retail Network in Current Service Areas. By leveraging our existing routes, particularly in rural regions where stores are often miles apart, we aim to "fill in" along these established paths, maximizing routes and expanding our network. This strategy allows us to scale rapidly and cost-effectively, tapping into underserved markets that align with our operational strengths. In Texas alone, we believe this approach could quickly add over 300 new retail locations, significantly boosting our reach and revenue. Our target is to add 2,000 locations within our existing service areas.
Implement Call Center Sales Team. We are establishing a dedicated call center sales team focused on reaching independent stores, expanding retail categories such as smoke shops and liquor stores, and other potential customers within our service areas. These new retailers represent strong opportunities for distributing our products, particularly our high-margin private-label lines. Once established, industry benchmarks suggest potential sales of $50,000 to over $100,000 per seat monthly, and we aim to initially launch with five seats, scaling to fifteen as demand grows. We have an existing database of over 70,000 retail leads to provide our sales team with a robust starting point to build relationships and drive sales. This initiative is a cost-effective way to penetrate new markets, optimize our product reach, and significantly boost revenues while maintaining sustainable operations.
Convert Mini-Hub Locations to Cash and Carry. We plan to convert select Mini Hubs into dual-purpose facilities that function as both Mini Hubs and Cash and Carry locations. Mini Hubs are small, localized storage spaces that support one to four drivers, optimizing deliveries within a specific area. By transforming these spaces into Cash and Carry destinations, we create additional retail channels where our partners can purchase wholesale goods directly. This approach leverages the products we already stock at these locations, creating economies of scale by maximizing the utility of our existing storage spaces. Cash and Carry locations also allow us to offer drop-shipping services, expanding our reach beyond traditional DSD routes. This initiative provides convenience for smaller retail partners who may not qualify for regular DSD service and increases sales opportunities by bringing retailers to us. It's an efficient , scalable model that enhances revenue while maintaining operational flexibility. The goal is to increase both our retail network and product offerings, leveraging existing resources.
Mission and Target Markets
The GPO Plus mission is to be the leading nationwide DSD provider to convenience stores and gas stations. Typically, 80% - 85% of all the products you see in convenience stores and gas stations are delivered by just a few distributors. The remaining 15% - 20% is serviced by dozens of vendors and distributors, with primarily a drop-ship model. Many of these vendors and/or distributors are regional; the larger the convenience store/gas station chain, the fewer vendors they want to work with. Our focus is consolidating this 15% - 20% of highly fragmented products represented by many vendors and distributors. This is our Target Market, where we have a significant competitive advantage due to our large service area and weekly DSD service!
The opportunity within this sector also lies mainly in the in-store sales domain, which is growing in diversity and volume. As consumer preferences shift towards quick , accessible shopping for a broader range of products, convenience stores are uniquely positioned to meet these demands. This market dynamic presents a fertile ground for companies like GPOX looking to capitalize on the expanding role of convenience stores beyond traditional fuel sales, offering substantial returns on investments in enhancing in-store offerings and customer experience.
The convenience store and gas station industry in the United States is vast, with approximately 152,396 establishments generating nearly $860 billion in total sales. Within this landscape, independent retailers make up 63.1% of the market, highlighting a significant opportunity for GPOX to empower these businesses with the same level of service and pricing as large chains, which will help to provide them a competitive advantage in their service area.
This 15%-20%, anything from car chargers to flavored pecans, is a $50 billion market opportunity within the $327 billion in-store sales convenience store market. It is also a significant pain point for convenience stores having to manage supply chain headaches, minimum order requirements, excess inventory, sourcing and qualifying products. GPOX solves these problems with a data-driven, tech-enhanced DSD model, helping independent retailers maintain streamlined inventory and improved profitability.
The growth path is straightforward; more stores and more products equate to more revenue. The easy math is that $4.35 million in revenue equates to about $900 a month in sales per store. The next growth milestone is 1,000 stores generating over $2,000 a month in sales, and we see a clear path with our current infrastructure for growing to 5,000 locations . The other good news is that we already have a few stores grossing over $5,000 per month. We are an extremely focused company executing a plan with a refined model ready to scale.
Innovations + Technological Advancements
Our in-house AI-powered technology platform, PRISM+, is at the core of our operations. Designed to streamline the distribution process, PRISM+ supports efficient delivery, inventory management, data analytics, and overall operational excellence. It enables precise inventory tracking, optimizes delivery routes, and ensures accurate, timely fulfillment, reducing overhead costs and increasing profitability for GPOX and our partners.
AI-driven data analytics has been a powerful tool in optimizing our DSD operations, enhancing decision-making, and improving customer satisfaction. By analyzing delivery route data, traffic patterns, and historical delivery times, we have been able to identify the most efficient routes for our drivers, reducing fuel costs , delivery times, and vehicle wear and tear. Our advanced route optimization algorithms dynamically adjust routes in real time based on current conditions , ensuring timely deliveries and reducing the likelihood of missed or late deliveries.
Our strategic approach involves close collaboration with retailers to curate a tailored selection of fast-moving consumer goods (FMCG) that cater to the specific needs of their customer base. By visiting retail partners weekly, we ensure that shelves are consistently stocked with the most sought-after products, maintaining optimal inventory levels and maximizing retail success. This partnership extends to working directly with manufacturers and vendors, enhancing our product lineup, and, in some cases, creating our own branded products to fill market gaps.
Conclusion
As we look to the future, our commitment to excellence and growth remains steadfast. We will continue to refine our DSD model, leverage AI data analytics for optimal decision-making, and expand our product portfolio to meet the evolving needs of gas stations and convenience stores. Our focus on technology, innovation, and strategic partnerships will drive our growth and profitability, positioning GPOX as a key player in the convenience retail sector.
We would also like to take this opportunity to thank our shareholders for your continued support and trust in our vision. Together, we will navigate the challenges and seize the opportunities that lie ahead, ensuring sustainable growth and long-term success for GPOX!
For more information, visit GPOPlus.com and sign up for GPOXPulse to receive the latest updates on GPOX's growth and innovations.
Connect with us on social media to view live video updates, content, and general information about GPOX and its GPOs: https://gpoplus.com/social.
About GPOPlus+ (GPOX)
GPOX is an AI-powered Distributor revolutionizing the future of distribution to gas stations and convenience stores with its innovative AI-driven Direct Store Delivery (DSD) model. Our goal is clear and ambitious: "to build the largest nationwide DSD distribution company servicing gas stations, convenience stores, and beyond." Our technology-driven AI network, featuring strategically placed Regional Hubs and Mini Hubs , is designed to optimize efficiency and maximize reach. Central to our operations is our in-house AI technology platform, PRISM+. Designed to streamline the distribution process, PRISM+ supports efficient delivery, inventory management, data analytics, and overall operational excellence, enabling us to reliably and effectively meet the dynamic needs of our partners. Our mission is to consolidate the fragmented market segment managed by numerous regional vendors. Our dedication to excellence is evident in our product selection process, where we align offerings with consumer demand and partner with top-tier vendors and brands, ensuring our portfolio remains diverse and highly profitable.
For more information, please visit www.GPOPlus.com.
Information about Forward-Looking Statements
This press release contains "forward-looking statements" that include statements regarding expected financial performance and growth information relating to future events. Forward-looking statements include statements with respect to beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond the control of the Company and its officers and managers, and which may cause actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by which, that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in, or suggested by, the forward-looking statements. Important factors that could cause these differences include, but are not limited to; inability to gain or maintain licenses, reliance on unaudited statements, the Company's need for additional funding, governmental regulation of the cannabis industry, the impact of competitive products and pricing, the demand for the Company's products, and other risks that are detailed from time-to-time in the Company's filings with the United States Securities and Exchange Commission. All statements other than statements of historical fact are statements that could be forward-looking statements. You can typically identify these forward-looking statements through use of words such as "may," "will," "can" "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "seek," "estimate," "continue," "plan," "point to," "project," "predict," "could," "intend," "target," "potential," and other similar words and expressions of the future. The Company expresses its expectations, beliefs and projections in good faith and believes that its expectations reflected in these forward-looking statements are based on reasonable assumptions. However, there is no assurance that these expectations, beliefs and projections will prove to have been correct. Such statements reflect the current views of the Company with respect to its operations and future events, and are subject to certain risks, uncertainties and assumptions relating to its proposed operations, including the risk factors set forth herein. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, the Company's actual results may vary significantly from those intended, anticipated, believed, estimated, expected or planned. In light of these risks, uncertainties and assumptions, any favorable forward-looking events discussed herein might not be realized and occur. The Company has no obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. For a more detailed description of the risk factors and uncertainties affecting GPO Plus, Inc. GPOX, please refer to the Company's recent Securities and Exchange Commission filings, which are available at www.sec.gov. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
###
Contact Information
Brett H. Pojunis
Chief Executive
ir@gpoplus.com
855.935.GPOX (4769)
SOURCE: GPO Plus, Inc.
View the original press release on accesswire.com
