99p Stores

99p Stores Ltd.

Quality products under a pound
Former type	Private Limited Company
Industry	Retail
Founded	Holloway, London, United Kingdom (18 January 2001)
Founder	Nadir Lalani
Defunct	6 March 2016
Headquarters	Northamptonshire, United Kingdom
Number of locations	220+
Key people	Nadir Lalani (CEO) Gordon Brown (Chairman)
Products	Groceries, Consumer goods, Do it yourself, electrical
Revenue	£183.5 million (as of December 31, 2009)
Operating income	£3.2 million (as of December 31, 2008)
Number of employees	3000+
Parent	Poundland

99p Stores Ltd. was a family run business founded in January 2001 by entrepreneur Nadir Lalani, who opened the first store in the chain in Holloway, London, with a further three stores opening later that year. In 2002, Lalani decided to expand the business throughout the UK and has rapidly developed 99p Stores, operating a total of 129 stores as of March 2010 and serving around 1.5 million customers each week, undercutting their main rival Poundland by a penny. As of mid-2009 the company offered more than 3,500 different product lines throughout its stores.

Most of their stores are based in the south of the UK, although there are stores as far north as Liverpool and Hartlepool. The chain saw accelerated store expansion upon the collapse of Woolworths Group, where they took the opportunity to acquire 15 of these former stores, increasing their estate to 79 at that time. Landlords are now regarding 99p Stores as an anchor tenant due to the significant number of customers one of their stores can bring to a location.

Although the retailer made a pre-tax loss of £1.14 million in the year to 31 January 2007, they claim that, since then, consumers have become more cautious with their money and where they spend it, in response to the current economic conditions. The retailer has noticed an increase of customers from the wealthier AB social grade (a system of demographic classification used in the United Kingdom) during the recession. Customers tend to speak positively about 99p Stores, with most reviewers noting customer and product overcrowding as their biggest criticisms, yet still rate the chain 4.5/5 on average.

In February 2015, Poundland agreed to buy 99p Stores for £55 million, with regulatory approval received in September 2015. The 99p Stores fascia began being phased out in favour of Poundland branding from late 2015.

Nadir Lalani came to the UK in 1973 from Tanzania, having owned a cash and carry store in Mwanza. Since moving to the UK he built up and sold two convenience store chains (including buying Whistlestop Discount Stores, a 27-strong chain which he sold in 2005) before moving into discount retailing, with intentions of handing the business over to his two sons, who also work for the company, in due course. Lalani was inspired to start 99p Stores after stumbling upon a bustling Poundland shop whilst wandering around a shopping centre. His first store opened on 18 January 2001, with over 3,500 customers visiting the store in the first day of trading. As of mid-2009, the company offered more than 3,500 different product lines throughout its stores.