Home: May - June 2007 › A first class bargain
A first class bargain
30/06/2007 | Channel: Retail
99p Stores - “twice the range with a penny change,” as Hussein Lalani reveals.
After missing his train back to London, Nadir Lalani was wandering around Birmingham city centre when he stumbled across Poundland, a unique shop offering a wide range of products all priced at just one pound. Having been impressed with this idea, Nadir travelled back to London to share the concept with his family. As a result of this, established businessmen, Nadir and his two sons - Hussein and Faisal, decided to venture into the discounting stores market. As a close knit family, the Lalani’s embarked upon the 99p Stores journey and three months later the first 99p Stores shop was born.
Now in its seventh year of trading, the 99p Stores concept is simple - everything and anything under the one roof available for just 99p. Hussein Lalani, commercial director for 99p Stores comments: “The company is a single price point retailer, which means we sell everything at the same price.”
He continues: “99p Stores was established in 2001 when we opened our first shop on Seven Sisters Road, in London. Since then we have experienced very rapid growth and on 5th May 2007 we opened our 50th store in Swansea. As a result of this growth, in December 2006 we were rated in the Sunday Times Fast Track 100 as the 19th fastest growing company in the country, which placed us as the fastest growing retailer in the UK.”
Fast Track 100 ranks Britain’s 100 private companies with the fastest growing sales over the last three years. In addition to this, the company was also rated in Midlands Business Insider magazine as the fastest growing business in the Midlands.
Furthermore, at the Lloyds TSB Asian Jewel Awards 2006, Nadir Lalani achieved a top award in the Business and Commerce category. The awards cover all aspects of the community including business and commerce, entrepreneurs, professionals, public service, media, healthcare and education and lifetime achievement. Taking place across three regions, over 800 people attend each event including a number of Lloyds TSB executives. The awards are a real opportunity to recognise the expertise and valuable contributions made from people, like Nadir, throughout the UK who are part of the Asian communities.
With a long history in retail, Nadir opened his first grocery store in 1978, after working in the newsagent business. By 1985 he owned 15 stores in London and then acquired 18 shops in the Europa chain, which was later sold to Tesco. After selling the Europa chain, he bought two Whistlestop outlets, which are convenience stores located in railway stations and airports. Nadir grew this business to 27 stores before once again selling the company. He then moved into the discounting market with the opening of his first 99p Store, which he continues to manage today.
When the first store was opened in London, feedback was exceptional and customers loved the look and feel of the store. In addition, clear price positioning and quality of the merchandise led to a second store opening in West Ealing in May that year. In 2005 the company’s warehouse and head office was relocated from its original London base to a brand new 150,000 sq ft unit in Daventry. With 50 stores operating today and many more in the pipeline, the company has been extremely successful and intends to carry on growing at this rate.
The success of 99p Stores is a result of its unique range of products that are not only very affordable but are of much higher quality than those you may find in other value shopping chains. The company also appreciates the expenses of raising a family at all ages and by bringing its customers savings on the cost of daily life, 99p Stores hopes they can afford to spend that little bit more on the things that matter most.
Hussein elaborates: “99p Stores is synonymous with great value products, good bargains and high quality services. Discount stores and products have become more fashionable over the last three to four years, especially in the clothing market with the introduction of stores like Primark and Peacocks. These types of shops have made getting a good bargain really popular again. As a result of this, the market is extremely buoyant at the moment. We have had a very good year so far and we hope the company will continue to be successful. There are always opportunities out there and I guess the larger the business grows the more we will be able to handle.”
He continues: “At the moment, approximately 40 per cent of our sales come from food products. Unlike our competitors we also offer a comprehensive grocery range, for example, we offer 18 fresh eggs for 99p. We also offer delicatessen foods, as well as multi-packs of crisps and chocolate. Personal care is another big proportion of our sales, accounting for about 25 per cent. Other products include, batteries and audio, car care, electrical, gardening and pet care - it’s almost like a mini department store. We also do comprehensive seasonal ranges covering all the major occasions, including Christmas, Easter and Valentines Day. “
He adds: “The main driving force behind the success of the company is the hard work the three of us - my dad, my brother and I have put into the 99p Stores concept. We take great pride in the business and will work whatever hours are required to improve the company. When we are in the Far East we work night and day to get the best products at the best prices for the business.
“We have a good family atmosphere within the organisation, which inspires everyone to do their best. Although we are growing very rapidly, want to retain the direct contact we have with our customers so we can continue to anticipate their needs.”
Looking to the future, 99p Stores has big plans for expansion throughout 2007. “We are hoping to open another 50 stores over the next 24 to 36 months,” Hussein comments. Taking a proactive approach, 99p Stores sends out leaflets to all the top property agents in the country showing the locations the company is looking to expand to. 99p Stores continues looking for more good sites so that it can give more customers a chance to buy products at its bargain prices.
Hussein concludes: “We have researched the market and estimated that there is potential on the market for up to 500 stores throughout the UK. We have seen various locations and are always on the lookout for new sites. When we have reached our potential we will then start looking at the next idea for the company.
“Although we have had offers from various countries, including some in Eastern Europe and Africa, who want to open a 99p Store, we are just focusing on the UK at the moment but who knows what the future holds.”
Now in its seventh year of trading, the 99p Stores concept is simple - everything and anything under the one roof available for just 99p. Hussein Lalani, commercial director for 99p Stores comments: “The company is a single price point retailer, which means we sell everything at the same price.”
He continues: “99p Stores was established in 2001 when we opened our first shop on Seven Sisters Road, in London. Since then we have experienced very rapid growth and on 5th May 2007 we opened our 50th store in Swansea. As a result of this growth, in December 2006 we were rated in the Sunday Times Fast Track 100 as the 19th fastest growing company in the country, which placed us as the fastest growing retailer in the UK.”
Fast Track 100 ranks Britain’s 100 private companies with the fastest growing sales over the last three years. In addition to this, the company was also rated in Midlands Business Insider magazine as the fastest growing business in the Midlands.
Furthermore, at the Lloyds TSB Asian Jewel Awards 2006, Nadir Lalani achieved a top award in the Business and Commerce category. The awards cover all aspects of the community including business and commerce, entrepreneurs, professionals, public service, media, healthcare and education and lifetime achievement. Taking place across three regions, over 800 people attend each event including a number of Lloyds TSB executives. The awards are a real opportunity to recognise the expertise and valuable contributions made from people, like Nadir, throughout the UK who are part of the Asian communities.
With a long history in retail, Nadir opened his first grocery store in 1978, after working in the newsagent business. By 1985 he owned 15 stores in London and then acquired 18 shops in the Europa chain, which was later sold to Tesco. After selling the Europa chain, he bought two Whistlestop outlets, which are convenience stores located in railway stations and airports. Nadir grew this business to 27 stores before once again selling the company. He then moved into the discounting market with the opening of his first 99p Store, which he continues to manage today.
When the first store was opened in London, feedback was exceptional and customers loved the look and feel of the store. In addition, clear price positioning and quality of the merchandise led to a second store opening in West Ealing in May that year. In 2005 the company’s warehouse and head office was relocated from its original London base to a brand new 150,000 sq ft unit in Daventry. With 50 stores operating today and many more in the pipeline, the company has been extremely successful and intends to carry on growing at this rate.
The success of 99p Stores is a result of its unique range of products that are not only very affordable but are of much higher quality than those you may find in other value shopping chains. The company also appreciates the expenses of raising a family at all ages and by bringing its customers savings on the cost of daily life, 99p Stores hopes they can afford to spend that little bit more on the things that matter most.
Hussein elaborates: “99p Stores is synonymous with great value products, good bargains and high quality services. Discount stores and products have become more fashionable over the last three to four years, especially in the clothing market with the introduction of stores like Primark and Peacocks. These types of shops have made getting a good bargain really popular again. As a result of this, the market is extremely buoyant at the moment. We have had a very good year so far and we hope the company will continue to be successful. There are always opportunities out there and I guess the larger the business grows the more we will be able to handle.”
He continues: “At the moment, approximately 40 per cent of our sales come from food products. Unlike our competitors we also offer a comprehensive grocery range, for example, we offer 18 fresh eggs for 99p. We also offer delicatessen foods, as well as multi-packs of crisps and chocolate. Personal care is another big proportion of our sales, accounting for about 25 per cent. Other products include, batteries and audio, car care, electrical, gardening and pet care - it’s almost like a mini department store. We also do comprehensive seasonal ranges covering all the major occasions, including Christmas, Easter and Valentines Day. “
He adds: “The main driving force behind the success of the company is the hard work the three of us - my dad, my brother and I have put into the 99p Stores concept. We take great pride in the business and will work whatever hours are required to improve the company. When we are in the Far East we work night and day to get the best products at the best prices for the business.
“We have a good family atmosphere within the organisation, which inspires everyone to do their best. Although we are growing very rapidly, want to retain the direct contact we have with our customers so we can continue to anticipate their needs.”
Looking to the future, 99p Stores has big plans for expansion throughout 2007. “We are hoping to open another 50 stores over the next 24 to 36 months,” Hussein comments. Taking a proactive approach, 99p Stores sends out leaflets to all the top property agents in the country showing the locations the company is looking to expand to. 99p Stores continues looking for more good sites so that it can give more customers a chance to buy products at its bargain prices.
Hussein concludes: “We have researched the market and estimated that there is potential on the market for up to 500 stores throughout the UK. We have seen various locations and are always on the lookout for new sites. When we have reached our potential we will then start looking at the next idea for the company.
“Although we have had offers from various countries, including some in Eastern Europe and Africa, who want to open a 99p Store, we are just focusing on the UK at the moment but who knows what the future holds.”
