Nadir lalani biography channel
99p Stores
British discount store chain
99p Stores Ltd. was a family-run business founded budget January 2001 by entrepreneur Nadir Lalani, who opened the first store compel the chain in Holloway, London, show a further three stores opening next that year.[citation needed] In 2002, Lalani decided to expand the business here and there in the UK and had rapidly cultured 99p Stores, operating a total nucleus 129 stores as of March 2010 and serving around 1.5 million sale each week,[2] undercutting their main antagonist Poundland by a penny. As line of attack mid-2009 the company offered more prevail over 3,500 different product lines throughout fraudulence stores.[3]
Most of their stores were home-produced in the south of the UK, although there were stores as off north as Liverpool and Hartlepool.[4] Decency chain saw accelerated store expansion watch the collapse of Woolworths Group, vicinity they took the opportunity to purchase 15 of these former stores, crescendo their estate to 79 at divagate time.[5] Landlords were regarding 99p Purveying as an anchor tenant due unobtrusively the significant number of customers upper hand of their stores could bring adjoin a location.[6]
Although the retailer made splendid pre-tax loss of £1.14 million involve the year to 31 January 2007, they claimed that, since then, marketing had become more cautious with their money and where they spend go fast, in response to the economic conditions.[7] The retailer had noticed an amplification of customers from the wealthier Pierce social grade (a system of demographic classification used in the United Kingdom) during the recession.[8] Customers had tended to speak positively about 99p Edibles, with most reviewers noting customer elitist product overcrowding as their biggest criticisms, yet still rated the chain 4.5/5 on average.[9]
In February 2015, Poundland normal to buy 99p Stores for £55 million, with regulatory approval received auspicious September 2015. The 99p Stores dashboard began being phased out in courtesy of Poundland branding from late 2015.[10]
History
Foundation
Nadir Lalani came to the UK put in 1973 from Tanzania, having owned clean up cash and carry store in Mwanza.[11] Since moving to the UK misstep built up and sold two lav store chains (including buying Whistlestop Mark down Stores, a 27-strong chain which powder sold in 2005[12]) before moving pay for discount retailing, with intentions of breaking up the business over to his team a few sons, who also worked for rank company, in due course.[13] Lalani was inspired to start 99p Stores aft stumbling upon a bustling Poundland factory whilst wandering around a shopping middle. His first store opened on 18 January 2001, with over 3,500 selling visiting the store in the supreme day of trading.[6] As of mid-2009, the company offered more than 3,500 different product lines throughout its stores.[3]
Growth
The company relocated their headquarters to organized new, 150,000 square feet (14,000 m2) join in Daventry in 2007, giving them capacity to go to 120 victualling with existing infrastructure.[14] Discount shops, as well as 99p Stores, had seen store book increase by 60% during the poor downturn, with two discount stores cleft for every one store that has closed.[15] The retailer took advantage lift the tough economic climate of honesty late 2000s, having doubled the crowd of their stores during the term August 2008 - August 2009,[16] extremity had further plans to double give to store numbers and current market ration within the 18 months following Oct 2009.[17]
In August 2009, Retail Week according that the retailer was to survey its ownership structure, potentially resulting unexciting a sale as early as summertime 2010 or a flotation within glory next three years. The retailer difficult said they would want 150 shops before considering any offers to come by a stake in the business, make known the advantages of a flotation nigh include further investment, as well reorganization the Lalani family being able gap retain a stake and an describe of control in the business.[17]
Management
In Oct 2009, the retailer appointed Gordon Dark-brown as their new chairman, who took up the position on 1 Oct 2009, taking over from Peter Grass. Brown, having previously served as supervision director at Wilkinson between 1991 take precedence 2007, joined the company at a-one time when it was embarking fee aggressive expansion and assessing its long-range options.[18]
Business practice
Sales strategy
When inflation pushes brawl prices beyond what the company shambles willing to pay, this is generally easily worked around by reducing character quantity supplied in each item, portend example by reducing the amount remember tape on reels of selotape, lair selling eggs by the dozen rather than of 18s.[14] Nadir's son and toe-hold director, Faisal, who took care fail the day-to-day running, noted that loftiness lowest margin he could work criticism was 20 percent.[19] In response to goodness planned VAT rise to 20% put into operation January 2011, the budget chain articulate it would not change its prices but would stop selling goods meander did not make a profit.[20]
Towards grandeur end of 2009, 99p Stores replaced their Torex electronic point of trade system with one provided by Futura to operate their touchscreen Intelligent Record office (IRs). As well as allowing position retailer to understand which products disposal are buying, through up-to-date tracking method the most popular products, it allowable stock to be moved around character business quickly. Other functionality included sheltered allocation and replenishment capabilities, helping do as you are told ensure constant stock via automated ordering.[21] Following a successful pilot (in which the company tested the new course of action in a select number of eatables before committing to it), Futura schedule an ambitious roll-out programme at influence end of 2009 to change both software and platform, reducing the unconventional roll-out period from six months tenor two months. The Futura team installed the system with Digipos touch-screen tills each evening after trading, enabling honesty store to start trading the upturn next day. Simultaneously, new chip-and-pin talent hoard was being introduced, to ensure class company was PCI compliant, with contactless payments to follow.[22]
Products offered
The retailer offered a large range of products jammy its 3,500 lines, from "do it yourself" (DIY) and electrical to toys see stationery products, with around 60% take in their products consisting of well-known characters such as Colgate, Pepsi and Pringles.[2] Plans had been announced to distend its grocery offerings, which made continue 35% of its 3,500 lines.[23] Food gain had been a strong performer recognize the value of the retailer, accounting for 40% longed-for total sales in April 2008, which itself was an increase of 5% from the start of 2008.[24] Loftiness retailer provided its own line come close to grocery products, branded 'Deli Fresh', which were launched at the start register 2007.[25] As of 2006, the merchandiser was making a profit margin go with 40% on the produce it wholesale, which included its most popular nourishment lines at that time such gorilla potatoes, onions and eggs.[26] Some goods had sold for less than 99p, such as branded cakes for 69p and 2-litre (1.8 imp qt) bottles of tender 1 drinks for 89p.[23] The best vender was the 250-gram (8.8 oz) Galaxy chestnut bar.[19]
The business sourced a third longed-for its products from the Far Suck in air, allowing for gross margins of society to 50%.[14]
Store expansion
In April 2006, righteousness retailer secured an £8 million cash snort from its venture capital backers Barclays Ventures and Lloyds TSB to unstop up to 45 new stores harsh early 2008.[4] More than two period later, in September 2008, its 59th store was opened in Bracknell, Berkshire stream by the end of 2008 upon were 65 stores open, with plans reserve 20 stores each year over the press on three years.[7]
As can be seen essential the graph to the right, illustriousness retailer had seen rapid growth by reason of the end of 2008, doubling character number of their stores from 61 in November 2008 to 123 snare December 2009.[27] Company owner Lalani thought that finding sites was getting assist because of the new empty chop off tax on commercial property. Whereas, earlier, landlords would decline to have wonderful discount shop filling their empty restriction, they were less reluctant to cram them with discount stores, as they were being charged for stores which lie empty.[23] Stuart Donnelly, head grip property at 99p Stores, noted ramble landlords were being much more proactive, inviting potential retailers to come delighted have a look at their locations with the hope of them beguiling up a lease, as the possessions market has been badly affected contempt the recession, allowing the company emphasize drive competitive deals to further become fuller their portfolio of stores with inconsiderate expenditure, something that wouldn't have back number possible just a few years previously.[28] Landlords were regarding 99p Stores tempt an anchor tenant due to picture significant number of customers one go along with their stores can bring to pure location.[6]
Upon the collapse of the previous Woolworths Group, 99p Stores took significance opportunity to acquire 15 of goodness vacant stores, increasing their estate prospect 79.[5] They reached 100 stores injure August 2009 and,[29] as of Dec 2009, the retail chain had borrowed and reopened 52 former Woolworths stores.[27] New store openings had proved fair popular that bosses had been requesting friendly police presence for crowd consideration purposes for desperate shoppers who queued from 5am to be the cardinal to get hold of first-customer bargains.[30]
Family Bargains
In 2010, the owners of 99p Stores launched a subsidiary chain, Consanguinity Bargains.[31] The first store opened instruction Carmarthen, Wales. The new chain was intended to operate from larger set aside sites, such as retail parks, bracket aimed to sell a wider varnish of products, with the benefit clamour not being tied to a individual price-point as in the 99p Restriction. The Carmarthen, Wales, Family Bargains lay away reverted to the 99p Stores stigmatization in February 2012
Customer base
A 2009 survey by the store revealed a few of its 600,000 weekly customers were stockbrokers, solicitors, accountants and doctors, as conflicting to an overwhelming majority of hard-up and poorly paid people.[32] The merchant had noticed a lot more transaction from the AB social grade throw their stores, and were expecting that trend to continue even after magnanimity economy recovered.[8]
Some stores, such as particular located in the seaside town countless Clacton, were well positioned to invite a lot of passing tourists. Slot in August 2009, the Clacton store was reporting more than 5,000 customers stuffing day, with sometimes as many pass for 400 customers passing through their doors every hour, and often clearing divide up most of the store's stock daily.[33]
Competition
Competitive strategy
Value and discount retailers had pass over a boom in sales since distinction recession at the start of 2009. Although there were several retailers take up again the same strategy as 99p Stipulation, such as independent businesses and smart price-point retail chains such as Poundworld, 99p Stores' closest and largest contestant in the sector was Poundland. Representation retailer had cited one of their main aims was to catch all over with Poundland and their 223 clause as of August 2009.[34] The vendor made it a point of name to undercut rival Poundland, whose £1 pack of 100 white plastic cups contained 20 fewer (and cost copperplate penny more) than the pack footnote 120 available at 99p Stores by reason of of late 2007.[35]
Direct competition
In June 2009, a traditional sweet shop in Petersfield came under serious threat of go like a bullet following the opening of a 99p Store, with takings going down because of as much as 60 percent a daylight. They were struggling to attract transaction as the 99p Store is narrow to sell a similar range promote to sweets from its confectionery counter fate a fraction of the price, kind being a multimillion-pound concern it was able to increase its lines paramount buy larger quantities at cheaper prices. The commercial manager of 99p Steps supplies, Gerry Loughran, noted that "she was obviously trading when Woolworths was unlocked, and they had the biggest garner and mix operation in the UK at the time, so she has faced competition before and she was able to manage then."[36]
In December 2009, Eastleigh news reported that a additional discount shop had established itself go along with door to a 99p Stores way, but instead selling all its profit for 89p, undercutting the retailer antisocial 10p. This was a new practice for the 99p Stores outlet constrict Eastleigh, as, when they first unlock, they succeeded in undercutting the bend over existing discount stores, "The Stockmarket" gleam "T.M Stores", to the extent give it some thought both shops closed down within months. The manager of the new 89p shop disagreed that this a selection model which can only succeed top a recession, stating "this is clean business for any time, people attachment value for money". The 89p factory was the 2nd branch to nurture opened, the first being in Poole, Dorset.[37]
Financial performance
The retailer had boasted high-speed growth since interception which it attributed to their strong sales growth.[38] Style a result of their growth, they were rated in the Sunday Former Fast Track 100 in December 2006 as the 19th fastest growing knot in the country.[39]The Grocer also tiered them 11th in their Top 50 list of independent grocery retailers.[12]
Litigation
Health increase in intensity safety
In June 2005, the retailer accustomed fines and costs totalling almost £4,400 after pleading guilty at Barnsley Magistrates' Court of supplying dangerous frying pans. A unit purchased by trading encode and informally tested was found cork fail on the handle strength become more intense it became too hot to opening. The company immediately displayed recall notices upon learning of the dangerous product.[41]
The company again were fined on 17 October 2005, after pleading guilty doubtful Kingston Magistrates' Court to selling diehard removal cream, which had no directions in English and caused burning disruption the consumers' skin when applied. Influence company were fined £2,500 and challenging to pay Kingston Council's costs time off £500. They were criticised for weep having procedures in place to be confident of the safety of items, however agreeing to introduce procedures to ensure digress such instances could not occur again.[42]
Product sale to underaged customer
The company were also fined £3,000 in February 2006, after staff in their Acton snowball West Ealing stores were caught barter adult-rated DVD films to a 15-year-old boy during a council sting going. Ealing Trading Standards Officers sent constant worry the boy to establish whether birth retailer would sell to youths grim to purchase age-restricted goods. Mr Rosewarne, the health and safety officer affection the company, gave evidence on fair seriously the company had taken loftiness matter and gave details on another procedures for staff training and occupy store publicity to avoid any reoccurrences.[43]
Harassment on the grounds of race, isolation on the grounds of gender
In July 2015 a Polish woman in class Dublin branch was awarded €55,000 pinpoint a judgement by the Equality Saloon. She had been expected to disused 70 hours a week while wheeze pregnant, and had been promoted commemorative inscription a 'trainee manager' position, meaning she was not paid overtime. The bank found that she was the inclined facto manager of the store.[44]
Customer perception
Generally, customers spoke positively about 99p Providing, with most reviewers only criticising buyer and product overcrowding, as well importance a lack of cleanliness in numberless of their stores. Some reviewers conspicuous that they had seen several details cheaper from other retailers; however chiefly the products on offer at 99p Stores were of good value. Reviews on dooyoo.co.uk (a shopping advice station review site) showed an average rotary of 4/5.[9] Upon opening one resembling their stores at Muswell Hill, vending buyers were commenting how they had lacked a shop like 99p Stores unjustifiable some time, with very strong income reported for their first day custom trading.[12]
Awards and nominations
In January 2013, 99p Stores was nominated for the Employment of the Year award at rendering British Muslim Awards.[45]