What happened
SmileDirectClub (SDC 18.18%) is about to have a larger presence on the retail scene in the U.S., and investors were happy to hear the news. After the company announced the opening of a clutch of its SmileShop stores, investors traded the stock up a beefy 24%.
So what
Before market open on July 11, SmileDirectClub said that it has opened 18 new SmileShops in the U.S. That enlarges its current footprint to 128 total worldwide. The company didn't hesitate to add that the news comes as it serviced its two millionth customer for its dental aligners.
Another milestone for SmileDirectClub is that the new store openings are the first since the start of the coronavirus pandemic in early 2020.
The stores provide a convenient location for customers to get fitted for their aligners and a site for regular checkups. The 18 new outlets are located in a host of American municipalities; the list includes Los Angeles, Manhattan, Indianapolis, and St. Louis.
In its press release trumpeting the news, SmileDirectClub referenced its efforts in the artificial intelligence (AI) sphere, writing that the added stores "will allow the company to efficiently expand its reach without cannibalizing existing outlets, and to service incremental customer demand generated by new channels like the AI-powered SmileMaker Platform."
Now what
The mention of SmileMaker was also an inducement to buy SmileDirectClub stock. This is a software program that provides a detailed "custom smile plan," after users create a 3D scan of their teeth with a mobile device. This is an encouraging indication that the company is effectively using technology to drive sales of its aligners.
