NEW YORK, NY--(Marketwire - Jun 7, 2012) - Safetek International, Inc. (PINKSHEETS: SFIN), a manufacturer and distributor of green technology and eco-friendly products, announced today that the company is signing a lease at Westfield Broward Mall, operated by Westfield Group (http://www.westfield.com/us/), for its first Retail Merchandising Unit (RMU). Westfield Group is a national mall operator of 55 centers (with 63 million square feet of retail space) strategically located in 12 key high population states.
The initial location represents the launch of a national campaign to open RMUs (kiosks) in the regional malls. Safetek International is targeting a number of other regional mall locations in South Florida. The company has already selected the Tampa and Orlando markets for the Hairganics brand. Safetek will also be offering franchise opportunities under the Hairganics brand.
Safetek International has chosen Westfield Broward Mall for its beta test of its Hairganics natural hair extensions line. Safetek plans to market all of their products to the specialty retail sector which includes approximately 1200 malls in the United States and 600 malls in Canada.
Michael Krantz, President of Safetek International, said, "We have invested a great deal of time developing the kiosk business model and we are excited to finally be launching the kiosk program. We anticipate that Hairganics will be a fast growing and profitable division of our business. With the initial success of our first two natural hair extensions distributors in California and New Jersey, we feel confident on launching the retail/wholesale model of this division. Westfield Broward Mall has three hair salons with none of them retailing eco-friendly, natural hair extensions specifically catering to this highly profitable end of the consumer market. This RMU will also be a unique location for stylists and salons within a 30 mile radius to view and purchase extensions for their retail salons at wholesale prices.
Other Eco-Friendly Products for Kiosks
The company has an extensive line of eco-friendly and organic products in the pipeline which will be merchandised to the kiosk business. The regional mall approach has been determined to be the ideal entry point for showcasing and selling these products through corporate-owned kiosks, future franchisees, and independent vendors who already have established businesses. In addition, Safetek is constantly sourcing for other eco-friendly products to add to our innovative eco-friendly product lines.
Krantz continued, "The importance of the kiosk business model is to gain the best product exposure for a reasonable cost without signing long term expensive leases. As an example to our future franchisees, a kiosk is where can you pay a couple of thousand dollars a month rent and, depending upon the particular mall, have up to 20,000 people walking past your display of products on a daily basis. An integral part of our retail expansion will involve the two approaches of placing corporate-owned kiosks along with tapping into the lucrative franchise market where rapid expansion without huge capital costs is possible. The company will be advertising all of its eco-friendly products in Specialty Retail (http://specialtyretail.com/), the trade magazine for kiosk-based businesses. And we are attending the Spreeshow 2013 (www.spreeshow.com) in Las Vegas next April to fully display our line of products directed to the kiosk business."
Noting the business opportunity for Safetek, Krantz said, "The potential sales growth in the kiosk business is exponential. Assuming an attainable goal of a small percentage of vendors buying our products, our sales will increase dramatically. With 1200 retail malls in the United States, and assuming a reasonable ten percent of malls with our kiosks, resulting in 120 customers purchasing an average of $7500 in product a month, our company would be running at a revenue rate of $900,000 dollars a month from the kiosk business alone. We believe that this is a realistic and attainable goal over the next twenty-four months both in monthly potential revenue and individual kiosk franchisees. These figures do not include substantial revenues anticipated from our commercial non-PVC food film packaging business. "
Mr. Krantz concluded, "The kiosk business division will be a very important division of our business roll-out, both to increase sales and build product visibility. The kiosks offer us a low-cost way to gauge consumer interest in products -- basically a quick test market as we evaluate new eco-friendly products to market going forward."
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About Safetek International, Inc. (www.SafetekInternational.com)
Safetek International, Inc. is a holding company (PINKSHEETS: SFIN) engaged in developing commercial opportunities in the organic, bio-degradable, zero carbon footprint or other "green" technology market sectors. The company's mission is to provide consumers and institutions with affordable high-quality, high-utility products which accommodate the growing public awareness of green issues and exploding demand for zero-carbon-footprint, earth-friendly goods and services.
This press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on the Company's current expectations as to future events. However, the forward-looking events and circumstances discussed in this press release might not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements