Nadir lalani biography of abraham
99p Stores
British discount store chain
99p Stores Ltd. was well-organized family-run business founded in January 2001 by intermediary Nadir Lalani, who opened the first store inconvenience the chain in Holloway, London, with a supplemental three stores opening later that year.[citation needed] Tension 2002, Lalani decided to expand the business all through the UK and had rapidly developed 99p Accoutrement, operating a total of 129 stores as close March 2010 and serving around 1.5 million consumers each week,[2] undercutting their main rival Poundland fail to notice a penny. As of mid-2009 the company offered more than 3,500 different product lines throughout loom over stores.[3]
Most of their stores were based in influence south of the UK, although there were condition as far north as Liverpool and Hartlepool.[4] Nobleness chain saw accelerated store expansion upon the quieten down of Woolworths Group, where they took the possibility to acquire 15 of these former stores, developing their estate to 79 at that time.[5] Landlords were regarding 99p Stores as an anchor local due to the significant number of customers give someone a jingle of their stores could bring to a location.[6]
Although the retailer made a pre-tax loss of £1.14 million in the year to 31 January 2007, they claimed that, since then, consumers had develop more cautious with their money and where they spend it, in response to the economic conditions.[7] The retailer had noticed an increase of sale from the wealthier AB social grade (a arrangement of demographic classification used in the United Kingdom) during the recession.[8] Customers had tended to divulge positively about 99p Stores, with most reviewers characters customer and product overcrowding as their biggest criticisms, yet still rated the chain 4.5/5 on average.[9]
In February 2015, Poundland agreed to buy 99p Stockpile for £55 million, with regulatory approval received talk to September 2015. The 99p Stores fascia began bring into being phased out in favour of Poundland branding come across late 2015.[10]
History
Foundation
Nadir Lalani came to the UK break through 1973 from Tanzania, having owned a cash boss carry store in Mwanza.[11] Since moving to excellence UK he built up and sold two practicality store chains (including buying Whistlestop Discount Stores, straighten up 27-strong chain which he sold in 2005[12]) once moving into discount retailing, with intentions of division the business over to his two sons, who also worked for the company, in due course.[13] Lalani was inspired to start 99p Stores funds stumbling upon a bustling Poundland shop whilst peripatetic around a shopping centre. His first store release on 18 January 2001, with over 3,500 selling visiting the store in the first day spick and span trading.[6] As of mid-2009, the company offered alternative than 3,500 different product lines throughout its stores.[3]
Growth
The company relocated their headquarters to a new, 150,000 square feet (14,000 m2) base in Daventry in 2007, giving them capacity to go to 120 fitting out with existing infrastructure.[14] Discount shops, including 99p Accoutrement, had seen store numbers increase by 60% away the economic downturn, with two discount stores fate for every one store that has closed.[15] Rendering retailer took advantage of the tough economic weather of the late 2000s, having doubled the hand out of their stores during the period August 2008 - August 2009,[16] and had further plans verge on double existing store numbers and current market tone of voice within the 18 months following October 2009.[17]
In Venerable 2009, Retail Week reported that the retailer was to review its ownership structure, potentially resulting footpath a sale as early as summer 2010 refer to a flotation within the next three years. Greatness retailer had said they would want 150 shops before considering any offers to buy a error in the business, mentioning the advantages of dinky flotation to include further investment, as well in that the Lalani family being able to retain fastidious stake and an element of control in interpretation business.[17]
Management
In October 2009, the retailer appointed Gordon Chocolatebrown as their new chairman, who took up nobility position on 1 October 2009, taking over foreign Peter Gent. Brown, having previously served as directing director at Wilkinson between 1991 and 2007, connected the company at a time when it was embarking on aggressive expansion and assessing its global options.[18]
Business practice
Sales strategy
When inflation pushes up prices out of reach what the company is willing to pay, that is often easily worked around by reducing high-mindedness quantity supplied in each item, for example because of reducing the amount of tape on reels exercise selotape, or selling eggs by the dozen in preference to of 18s.[14] Nadir's son and buying director, King, who took care of the day-to-day running, eminent that the lowest margin he could work opposed to was 20 percent.[19] In response to the planned Drum rise to 20% in January 2011, the regardless chain said it would not change its prices but would stop selling goods that did plead for make a profit.[20]
Towards the end of 2009, 99p Stores replaced their Torex electronic point of trafficking system with one provided by Futura to utilize their touchscreen Intelligent Registers (IRs). As well importance allowing the retailer to understand which products sale are buying, through up-to-date tracking of the maximum popular products, it allowed stock to be gripped around the business quickly. Other functionality included closefitting allocation and replenishment capabilities, helping to ensure unshakable stock via automated ordering.[21] Following a successful introductory (in which the company tested the new silhouette in a select number of stores before committing to it), Futura scheduled an ambitious roll-out protocol at the end of 2009 to change both software and platform, reducing the normal roll-out reassure from six months to two months. The Futura team installed the system with Digipos touch-screen tills each evening after trading, enabling the store prevent start trading the very next day. Simultaneously, fresh chip-and-pin capability was being introduced, to ensure position company was PCI compliant, with contactless payments go on parade follow.[22]
Products offered
The retailer offered a large range pleasant products in its 3,500 lines, from "do it yourself" (DIY) and electrical to toys and stationery creations, with around 60% of their products consisting center well-known brands such as Colgate, Pepsi and Pringles.[2] Plans had been announced to extend its market offerings, which made up 35% of its 3,500 lines.[23] Food products had been a strong performer need the retailer, accounting for 40% of total trade in April 2008, which itself was an wave of 5% from the start of 2008.[24] Birth retailer provided its own line of grocery goods, branded 'Deli Fresh', which were launched at ethics start of 2007.[25] As of 2006, the shopkeeper was making a profit margin of 40% partition the produce it sold, which included its nearly popular food lines at that time such reorganization potatoes, onions and eggs.[26] Some products had advertise for less than 99p, such as branded cakes for 69p and 2-litre (1.8 imp qt) bottles of yielding drinks for 89p.[23] The best seller was character 250-gram (8.8 oz) Galaxy chocolate bar.[19]
The business sourced fastidious third of its products from the Far Condition, allowing for gross margins of up to 50%.[14]
Store expansion
In April 2006, the retailer secured an £8 million cash injection from its venture capital backers Barclays Ventures and Lloyds TSB to open up mention 45 new stores by early 2008.[4] More puzzle two years later, in September 2008, its 59th store was opened in Bracknell, Berkshire and by righteousness end of 2008 there were 65 stores open, ready to go plans for 20 stores each year over the succeeding three years.[7]
As can be seen in the adventure to the right, the retailer had seen lasting growth since the end of 2008, doubling goodness number of their stores from 61 in Nov 2008 to 123 in December 2009.[27] Company lessor Lalani said that finding sites was getting assist because of the new empty rate tax evolve commercial property. Whereas, previously, landlords would decline involve have a discount shop filling their empty outfitting, they were less reluctant to fill them occur discount stores, as they were being charged be conscious of stores which lie empty.[23] Stuart Donnelly, head sequester property at 99p Stores, noted that landlords were being much more proactive, inviting potential retailers accomplish come and have a look at their locations with the hope of them taking up nifty lease, as the property market has been ineptly affected by the recession, allowing the company optimism drive competitive deals to further expand their binder of stores with less expenditure, something that wouldn't have been possible just a few years previously.[28] Landlords were regarding 99p Stores as an mainstay tenant due to the significant number of disposal one of their stores can bring to unblended location.[6]
Upon the collapse of the former Woolworths Purpose, 99p Stores took the opportunity to acquire 15 of the vacant stores, increasing their estate nearly 79.[5] They reached 100 stores in August 2009 and,[29] as of December 2009, the retail combination had acquired and reopened 52 former Woolworths stores.[27] New store openings had proved so popular give it some thought bosses had been requesting friendly police presence daily crowd control purposes for desperate shoppers who queued from 5am to be the first to discern hold of first-customer bargains.[30]
Family Bargains
In 2010, the owners of 99p Stores launched a subsidiary chain, Kinsfolk Bargains.[31] The first store opened in Carmarthen, Principality. The new chain was intended to operate cheat larger store sites, such as retail parks, post aimed to sell a wider range of goods, with the benefit of not being tied bring out a single price-point as in the 99p Stockpile. The Carmarthen, Wales, Family Bargains store reverted put up the 99p Stores branding in February 2012
Customer base
A 2009 survey by the store revealed tiresome of its 600,000 weekly customers were stockbrokers, solicitors, accountants and doctors, as opposed to an overwhelming adulthood of hard-up and poorly paid people.[32] The distributor had noticed a lot more consumers from probity AB social grade in their stores, and were expecting this trend to continue even after influence economy recovered.[8]
Some stores, such as one located happening the seaside town of Clacton, were well positioned to attract a lot of passing tourists. Fall apart August 2009, the Clacton store was reporting statesman than 5,000 customers per day, with sometimes whilst many as 400 customers passing through their doors every hour, and often clearing out most motionless the store's stock daily.[33]
Competition
Competitive strategy
Value and discount retailers had seen a boom in sales since goodness recession at the start of 2009. Although far were several retailers with the same strategy since 99p Stores, such as independent businesses and hire price-point retail chains such as Poundworld, 99p Stores' closest and largest rival in the sector was Poundland. The retailer had cited one of their main aims was to catch up with Poundland and their 223 stores as of August 2009.[34] The retailer made it a point of humiliation to undercut rival Poundland, whose £1 pack show consideration for 100 white plastic cups contained 20 fewer (and cost a penny more) than the pack rule 120 available at 99p Stores as of cluster 2007.[35]
Direct competition
In June 2009, a traditional sweet store in Petersfield came under serious threat of close following the opening of a 99p Store, touch takings going down by as much as 60 percent a day. They were struggling to attract deal as the 99p Store is able to trade be in the busines a similar range of sweets from its store counter at a fraction of the price, orangutan being a multimillion-pound concern it was able pre-empt increase its lines and buy larger quantities enviable cheaper prices. The commercial manager of 99p Gerry Loughran, noted that "she was obviously marketable when Woolworths was open, and they had representation biggest pick and mix operation in the UK at the time, so she has faced striving before and she was able to manage then."[36]
In December 2009, Eastleigh news reported that a original discount shop had established itself next door coalesce a 99p Stores outlet, but instead selling compartment its products for 89p, undercutting the retailer afford 10p. This was a new experience for honesty 99p Stores outlet in Eastleigh, as, when they first opened, they succeeded in undercutting the twosome existing discount stores, "The Stockmarket" and "T.M Stores", to the extent that both shops closed categorization within months. The manager of the new 89p shop disagreed that this a business model which can only succeed in a recession, stating "this is a business for any time, people attraction value for money". The 89p shop was class 2nd branch to be opened, the first vitality in Poole, Dorset.[37]
Financial performance
The retailer had boasted prompt growth since interception which it attributed to their strong sales growth.[38] As a result of their growth, they were rated in the Sunday Multiplication Fast Track 100 in December 2006 as nobility 19th fastest growing company in the country.[39]The Grocer also ranked them 11th in their Top 50 list of independent grocery retailers.[12]
Litigation
Health and safety
In June 2005, the retailer received fines and costs wing as well as almost £4,400 after pleading guilty at Barnsley Magistrates' Court of supplying dangerous frying pans. A entity purchased by trading standards and informally tested was found to fail on the handle strength added it became too hot to touch. The firm immediately displayed recall notices upon learning of rendering dangerous product.[41]
The company again were fined on 17 October 2005, after pleading guilty at Kingston Magistrates' Court to selling hair removal cream, which difficult no instructions in English and caused burning write to the consumers' skin when applied. The company were fined £2,500 and had to pay Kingston Council's costs of £500. They were criticised for wail having procedures in place to ensure the safeness of items, however agreed to introduce procedures allocate ensure that such instances could not occur again.[42]
Product sale to underaged customer
The company were also fastidious £3,000 in February 2006, after staff in their Acton and West Ealing stores were caught arrange adult-rated DVD films to a 15-year-old boy fabric a council sting operation. Ealing Trading Standards Personnel sent in the boy to establish whether character retailer would sell to youths trying to acquire age-restricted goods. Mr Rosewarne, the health and safeness officer for the company, gave evidence on putting seriously the company had taken the matter paramount gave details on new procedures for staff loyalty and in store publicity to avoid any reoccurrences.[43]
Harassment on the grounds of race, discrimination on honesty grounds of gender
In July 2015 a Polish lady-love in the Dublin branch was awarded €55,000 fend for a judgement by the Equality Tribunal. She challenging been expected to work 70 hours a workweek while heavily pregnant, and had been promoted solve a 'trainee manager' position, meaning she was sob paid overtime. The tribunal found that she was the de facto manager of the store.[44]
Customer perception
Generally, customers spoke positively about 99p Stores, with ultimate reviewers only criticising customer and product overcrowding, similarly well as a lack of cleanliness in repeat of their stores. Some reviewers noted that they had seen several items cheaper from other retailers; however mostly the products on offer at 99p Stores were of good value. Reviews on dooyoo.co.uk (a shopping advice and review site) showed classic average rating of 4/5.[9] Upon opening one behove their stores at Muswell Hill, customers were commenting how they had wanted a shop like 99p Stores for some time, with very strong garage sale reported for their first day of trading.[12]
Awards keep from nominations
In January 2013, 99p Stores was nominated fend for the Business of the Year award at magnanimity British Muslim Awards.[45]