- Nadir Lalani, founder of 99p Stores talks about growing a business in recession
- Lalani says the key to the success of his business is making fast decisions in buying
- Recession helps his business model as it profits from offering better value,says Lalani
- Lalani says he is also looking for opportunities in investing in manufacturing in Africa
Nadir Lalani, arrived in the United Kingdom in the recession-hit 1970s from Tanzania and started a small corner shop. Since then, he has expanded his successful budget retail business '99p Stores', throughout the country.
The stores, where everything is sold for 99 pence and are equivalent to dollar stores in the United States, have grown rapidly especially during the global downturn. Lalani now operates more than 100 stores in Britain and serves around 1.5 million customers each week.
Times are tough on the British High street but Lalani has managed to open 40 new stores in one year as a growing number of consumers go on the hunt for a bargain.
Lalani, who is of Pakistani origin, shares his experience of building a recession-proof business with CNN's Erin Maclaughlin in this edited version of their conversation below.
CNN: How successful is this business?
Nadir Lalani: I would say we are very very successful today. Our growth is very, very good compared to anybody else. We bring 2,000 people, customers to our store minimum. 2,000 customers a day is a lot. And once people do come, they stick with us. Because we sell very, very cheap quality good stuff.
CNN: You have gone from running a corner shop to a massively successful business in the middle of economic downturn. What are some of the secrets to your success?
Nadir Lalani: Key to our success is 'buying'. We make very fast decisions. Whatever people want to sell. They say we want to get rid of this stock. And we buy those stocks straight away. So no, we don't mess about it.
CNN: What is your strategy? How do you get your prices so low?
Nadir Lalani: The prices we sell at, nobody can match us, we sell much cheaper than any of the multipurpose -- the brand we bring in, the price -- so people just come in, you will see in just a few minutes, hundreds of people, hundreds of people literally.
CNN: How has Britain's economic downturn been a catalyst for your success?
Nadir Lalani: With the downturn, we find it more and more...the middle class people are coming in our store and then they come in and they are surprised what they have been paying Tesco. The prices are so much cheaper, and it is the same brand. Because we sell a lot of branded products.
CNN: Do you think the economic downturn has helped your business model in some ways?
Nadir Lalani: Yeah...to certain extent, yes, definitely. Like, if you look at November, Britain's retail sales were down. We were seven percent up, like for like, which is very, very good in this climate. There are very few companies who would have achieved that.
CNN: And why is that?
Nadir Lalani: It's just the product. What we offer to our customer, is unbelievable value. Even a multimillionaire likes a bargain.
CNN: How has your experience in Africa aided the growth of your business?
Nadir Lalani: You see in Africa, when you do business, it's more trading, and the trading element helps us a lot here. We are just traders. Buy cheap, sell cheap.
CNN: How do you view the African market?
Nadir Lalani: I would like to go back and invest there.
CNN: And why do you think it's a good place to invest?
Nadir Lalani: Because the market is still young. There are a lot potentials there. I am looking for a moment to invest there you know. Manufacturing, that's what they need. Because they don't want to spend their currency, foreign exchange importing. They need manufacture locally, they need industry in Africa. So they can be more dependable on themselves.