GPO Plus, Inc. Scores Record-Setting Revenues Through Aggressive Retail Location Expansion ($GPOX)

GPO Plus, Inc. Scores Record-Setting Revenues Through Aggressive Retail Location Expansion ($GPOX)

There’s a saying in the retail sector- “location, location, location.” For GPO Plus, Inc. (OTCQB: GPOX), maximizing theirs is leading to extraordinary revenue growth as they expand their retail sales footprint across the country. And that good news doesn’t benefit GPOX and its retail partners exclusively. Investors can accrue benefits as well. In fact, the steepening revenue and store opening trajectory combine to expose an investment opportunity that appears to be more than ripe for the taking; the disconnect between GPOX’s assets, sales growth, near-term potential, and its share price may be too good to ignore.

That bullish presumption is justified based just on current operations. The value proposition is even more compelling considering its plans to nearly double its retail store footprint from 570 locations to 1000 by the end of its 2024 fiscal year. While that initiative creates accretive value, there’s more expected to contribute. Equally important to supporting the investment thesis is that revenues per location are also surging, with GPOX reporting that the average revenue contributions per location increased by roughly 265% from the first 100 stores receiving its new Distro+ divisions’ “White Glove Direct Store Delivery,” from approximately $580 per location to $2,120. That trend is more than impressive; it’s accelerating from a string of new retail partnership agreements. 

Most recently, GPOX announced a deal with hemp smokables company Hempacco Co, Inc. (NASDAQ: HPCO), which positions them well to capitalize on revenue-generating opportunities from an estimated $1 trillion industry. While an enormous opportunity now, it’s expected to get significantly larger as consumer preference trends show increasing interest in and demand for hemp-based products as an alternative to nicotine tobacco. The deal, facilitated through its distribution division Distro+, will promote, market, and sell Hempacco’s entire portfolio of hemp products in eligible Yesway and Allsup stores across the United States. 

Expanding Retail Presence In Fast-Growing 

That’s a big deal. Both companies present GPOX with significant expansion potential. Yesway, in fact, is one of the fastest-growing convenience store operators in the United States. And keep in mind that these newest agreements are enhancements, not starting points, which strengthens GPOX’s previously announced retail partnership intentions to introduce The Feel Good Shop+ into eligible locations. 

The Feel Good Shop+ is GPOX’s innovative “store within a store” concept, offering an extensive range of CBD and other hemp-derived products. Specific to this deal, GPOX revenues could get a quick boost from placing popular Hempacco products, including The Real Stuff Hemp Smokables, Rick Ross’s Hemp Hop Smokables and Wraps, Cheech & Chong Smokables and Wraps, and Snoops Dogg’s Dogg lbs brands. But more than excellent products are contributing to the high expectations. 

GPOX’s mentioned “White Glove DSD” should as well. It’s a hands-on, full-service business model that GPOX said has been instrumental in driving average sales per unit to record levels. That makes sense. The unique approach to servicing retail clients does more than provide enhanced product offerings to its outlets; it serves a soaring number of customers turning to CBD-inspired health and wellness products. Indeed, as a tangible value driver, the expected contributions from its “White Glove DSD” have another value to consider. This one benefits investors.

GPOX believes that the program could lead to them realizing a potential windfall of revenue-generating opportunities by being on-site to provide clients with a service and benefit that others don’t- particularly by filling a manufacturing and delivery gap for the 15% – 20% of items not typically provided by those locations’ primary vendors. So far, GPOX notes that the reception to the service is excellent, with many of its retail partners showing interest in the additional products and services GPOX can provide through this uncomplicated but comprehensive program.

Fueling An Aggressive Growth Agenda

That’s allowed GPOX to model for another growth spurt in 2024, saying its “White Glove DSD”  should contribute to opening at least 500 new locations during its fiscal year. The excellent news from an investor’s perspective, especially those appraising the value proposition, is that GPOX utilizes proprietary technology, real-time data, and efficiencies from its hub and spoke business services model, which should facilitate revenues from new and existing sites to fall faster toward the bottom line. And there could be plenty more of it to drop.

GPOX believes increased product offerings could increase average sales per convenience store location to over $3,000, about 40% higher than current. Contributing to that potential, GPOX highlighted executing its plans to introduce proprietary new products, such as Yuenglings Ice Cream flavored gummies and High-Cloud gummies, which are expected to generate roughly 40% gross margins. By the way, the gross margins for general products are also impressive, typically between 20% – 35%. That strength could accelerate GPOX’s potential to reach cash flow and/or bottom-line EPS by the end of this new fiscal year. They should get additional help.

GPOX said it expects to onboard roughly 258 locations in Texas, Iowa, and Kansas by the end of this year and another 123 locations throughout New Mexico in early 2024. The new revenue contributions could be substantial, considering plans to serve entire product lines from some of its partnerships at each site and using a rising store-average sales estimate. Remember, too, those could get an additional bump higher from its mission to fill a service gap. This initiative can be a revenue game changer in 2024.

Filling A Service Niche

According to GPOX, most retailers get about 80% – 85% of their products from just a few distributors, with the remaining products sometimes represented by dozens of separate vendors. For most corporate retailers, that’s a significant managerial pain point, especially gas stations and convenience stores that sell potentially thousands of different products. Alleviating that problem is where GPOX sees an opportunity, again leveraging the value of its White Glove DSD service to mitigate specialty retailers’ challenges of identifying and qualifying new products, ensuring quality, and managing delivery. In the best case, GPOX believes its White Glove DSD service can help eliminate not just many of the challenges faced but potentially 100% of them. 

If so, the program will do more than continue attracting new business; it can strengthen an already steepening growth curve of serviced locations by simplifying and optimizing client operations. Backend support with innovative technology is fueling that intent. GPOX announced live testing, implementation, and the rollout phase for MSRP+, its proprietary software empowering order management, logistics optimization, lead generation, sales analytics, accounting, inventory management, and an e-commerce platform, which combines to maximize intrinsic strengths related to manufacturing and distributing consumer products. Moreover, the mix of products, services, and technology could shift GPOX’s already fast growth pace into a higher gear. 

That’s more than likely, it’s probable. Remember, GPOX offers to do what others won’t, including doing the heavy lifting for clients regarding price negotiation, meeting minimum order requirements from large manufacturers, and providing uncompromising, hands-on service, from order placement to shelf stocking to end-sales management. It’s an underserved niche opportunity that’s more than a target; it’s in GPOX crosshairs. 

A Value Proposition Exposed 

And it contributes to an increasing sum of GPOX’s parts supporting the case that the company’s current share price isn’t a fair representation of intrinsic value and inherent potential. However, that’s not entirely bad news since the disconnect does expose an investment opportunity at what can be accurately described as ground-floor levels. Still, knowing that fundamentals ultimately drive share prices, the more investors learn about GPOX, especially its across-the-board growth, the gap between undervalued and fair could close quickly.

It should. Remember, as it stands, GPOX is delivering consecutive record-setting operating performance, is enjoying a surging retail presence, and has implemented operations efficiencies to facilitate its revenues to fall faster toward its bottom line. That alone supports GPOX re-claiming its 52-week high of $0.29. And with much more expected this year and by being better positioned today than when it scored that level, it’s fair to suggest it may earn that mark sooner rather than later.

 

 

IMPORTANT NOTICE AND DISCLAIMER: All investments are subject to risk, which must be considered on an individual basis before making any investment decision. This paid advertisement includes a stock profile of GPO Plus, Inc. (Nasdaq: GPOX). Primetime Profiles Direct, a property of Shore Thing Media Group, Llc. is an investment newsletter being advertised herein. This paid advertisement is intended solely for information and educational purposes and is not to be construed under any circumstances as an offer to sell or a solicitation of an offer to purchase any securities. In an effort to enhance public awareness, Shore Thing Media Group, Llc. was retained by Spyder Growth Strategies, Llc to create and distribute digital content for GPO Plus, Inc. Spyder Growth Strategies Llc compensated Shore Thing Media Group, Llc., and/or, its parent company, $5,000 to complete and distribute these services. This advertisement is being disseminated for a period of one month beginning on 12/4/23 and ending on 12/31/23. Shore Thing Media Group, Llc. owners, officers, principals, affiliates, contributors, and/or related parties do not own, intend to own, sell, or intend to sell GPO Plus, Inc. stock. However, it is prudent to expect that those hiring Shore Thing Media Group, Llc, including its owners, employees, and affiliates may sell some or even all of the GPO Plus, Inc. shares that they own, if any, during and/or after this engagement period. If successful, this advertisement will increase investor and market awareness of GPO Plus, Inc. and its securities, which may result in an increased number of shareholders owning and trading the securities, increased trading volume, and possibly an increase in share price, which may be temporary. This advertisement does not purport to provide a complete analysis of GPO Plus, Inc. or its financial position. The agency providing this content are not, and do not purport to be, broker-dealers or registered investment advisors. This advertisement is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor. Any investment should be made only after consulting a registered broker-dealer or registered investment advisor or, at a minimum, doing your own research if you do not utilize an investment professional to make decisions on what securities to buy and sell, and only after reviewing the financial statements and other pertinent publicly-available information about GPO Plus, Inc. Further, readers are specifically urged to read and carefully consider the Risk Factors identified and discussed in GPO Plus, Inc. SEC filings. Investing in microcap securities such as GPO Plus, Inc. is speculative and carries a high degree of risk. Past performance does not guarantee future results. This advertisement is based exclusively on information generally available to the public and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, Shore Thing Media Group, Llc. cannot guarantee the accuracy or completeness of the information and are not responsible for any errors or omissions. This advertisement contains forward-looking statements, including statements regarding expected continual growth of GPO Plus, Inc. and/or its industry. Shore Thing Media Group, Llc. note that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect GPO Plus, Inc. actual results of operations. Factors that could cause actual results to vary include the size and growth of the market for GPO Plus, Inc. products and/or services, the company’s ability to fund its capital requirements in the near term and long term, federal and state regulatory issues, pricing pressures, etc. All trademarks used in this advertisement are the property of their respective trademark holders and no endorsement by such owners of the contents of this advertisement is made or implied. Shore Thing Media Group, Llc. are not affiliated, connected, or associated with, and are not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made to any rights in any third-party trademarks. Additional disclosures and disclosures can be found at https://primetimeprofiles.com/disclaimer/.

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