Imtiaz: Making the Difference in Modern Trade Retailing, AKA Local Walmart

Contributed by: Muhammad Jahanzaib Shafique & Shahbaz Murad
To surprise many, Imtiaz Super Market is providing its customers the unique shopping

experience since 1955, and is one of its kind modern retail departmental store offering products. In Karachi, Imtiaz is currently operating with 5 outlets located in all major areas in Karachi namely Nazimabad, Gulshan-e-Iqbal, DHA, Bahadurabad and Shahra-e-Faisal. It is the first ever retail-store located in the southern region of Pakistan’s financial capital. Convenience, amazing product range, excellent customer service and unmatched affordability are few of the features that make Imtiaz Super Market the leader in modern trade channel shopping in Pakistan. Flexible timings allow customers to shop more conveniently in a safe and secure environment unlike open markets; where the products like vegetables, fruits and meat are offered in an unhygienic environment.

RETAIL FORMAT 

a) Factors for choosing store location: 

Mall availability for the type of store Imtiaz wants to develop is the first key element in

establishing a new store. High rentals are also charged for the extent of space which Imtiaz looks for. Infrastructure including 3 to 4 floors and parking space is necessary for the store to run its operations. Supply Chain Management Warehouse inside the store is also another important thing for Imtiaz to carry out its daily operations without shortage of inventory. An inside warehouse is established at each store and continuous updating of that warehouse  inventory is maintained to run the operation smoothly throughout the day. Premium Location: Premium location in terms of high footfall of customers is achieved by the opening of Imtiaz super markets in the main areas of Karachi. The areas in which stores are safe to operate and which are easily accessible by the customers in their convenient timing. Prime Locations including the most important and densely populated areas are targeted.

b) Type of Location 

Imtiaz super market has carefully chosen the location of their stores. All the major areas of Karachi which are densely populated and have average leading to elite standard of living are the target market of their stores. For solving the problem of parking area and making sure that roads adjacent to their stores do not get stuck and avoid traffic jams huge space for parking is reserved adjacent to stores. To reduce time wastage in parking the vehicle by customers themselves valet parking is also available at many stores. 

STORE DESIGN & RETAILING IMAGE MIX

a) Employee Type and Density 

Minimum qualification of employees required by Imtiaz is matriculation. Employees speak national language i.e. Urdu. Female and male employees are designated as per the nature of their job. Products related to women personal care and hygiene have mostly female employees at the counters and for helping customers while others categories of products have male employees. Final checkout counters have both female and male counters to conveniently manage the traffic checking out of the store. The dress code is blue shirt and black pent for males and black long shirts and blue pants for ladies with a black scarf. Most of the salesmen are engaged in work in the sections of basic commodities. As far as density is concerned, they have 4- 5 employees working in each aisle. 

b) Merchandise Type and Density 

Imtiaz Store is very dense as far as merchandise is concerned and has approximately 1,000

pieces per sq ft. It has both a wide and deep assortment of merchandise to cater a versatile market.

c) Fixture Type and Density 

The fixtures at Imtiaz Store include blue plastic racks that carry all items. The number of fixtures per square foot of space at Imtiaz is 40. The density of the fixture complements the density of the merchandise there, thus making shopping convenient for customers. 

d) Sound Type and Density 

High quality sound systems are installed in the stores. Five times prayers calls are lively recited on the speakers. Important and emergency announcements are also made through the speakers. 

e) Odor  and Density 

Every department of the store have their own special odor prevailing in the stores.Bakery department have smell of the baked items,vegetables have fresh smell at their department while personal care and hygiene fragment have a nice odor of different perfumes, soaps, shampoos etc. A tangy smell can also be smelt when entered in the section of spices.

f) Visual Type and Factors 

Bright white lights are installed inside the stores to brightly present all the products and provide convenience to the customers to find and inspect the items without facing any difficulty. Bright white lights also induce the customers to buy more.

VISUAL MERCHANDISE AND DISPLAY: 

Through visual merchandising Imtiaz reduces the employee mix and increase per square feet returns and can further helps in reducing marketing budgets. To attract the customers and make them buy more in bulk Imtiaz store utilize the freezers of different companies which attract customers to buy more and more of their desired products. Pepsi, Coke, K&N’s and many more companies have their fridges placed in the store with attractive color and pricing schemes. In perfume and deodorants section customers can use from large variety of products and choose them through free testing samples. Advertisement on the front of Imtiaz stores also attract customers and induce them to buy more of that product. New temporary style stalls of different companies are also placed in the store.

SHOP DISPLAYS

Exterior and interior shop displays are used for the to make the customers decide and buy

quickly. Shop displays also help customers to find their desired product without the wastage of time.

a) Live Displays

Products from the personal care and hygiene companies are used for the live displays on the entrance of Imtiaz store like fair & lovely etc. 

b) Counter Displays

For impulse purchases Imtiaz uses its counter displays for merchandise like suparis, bubble gums, cigarette lighters and batteries. 

c) End Cap Displays 

Imtiaz uses end cap displays as their point of purchase products like staples etc. and induce customers to less browse and buy more during the distance covered between aisles and end cap.

STORE ATMOSPHERICS 

The store atmospherics at Imtiaz Store has been properly maintained to create the unique image of the store. 

a) Exterior 

Exterior of the store depicts the overall image of a high quality super store. Advertisements are displayed on the front of store through bill boards and different large Pena flexes. 

b) Signage 

The storefront has been designed in a way that compliments the color combination that has been used throughout the store. A big light blue sign with Imtiaz Store written in bold letters is the first thing you see when you enter the lane. 

c) Interior

Interior is designed to facilitate customers starting from the good temperature inside the store. As per the weather conditions, bright lights and the proper maintenance of the aisle placed with formality throughout the store.

Space Mix: 

The selling area at Imtiaz Store accounts for 70% of the total area, and the retailing 30% has been kept circulation and back area respectively. The 30% non-selling area includes the staircase and obstacles which leads to the warehouse. Back area includes the go down and the warehouse present within boundaries of the store. Selling space of Imtiaz store is divided in term of size and location of different groups of merchandise such as U-shaped fastener and impulse items. These goods constitute about 50% of the store and are placed at the deeper end of the store. 

Retail Space Management:

The customer enters to the store for buying basic commodities like wheat, rice and other staples which are kept in the deeper of the store, customer often keeps walking inside follow the walkway where it leads to basic commodities. This technique works because it makes customers to buy stuff that is not even in their shopping list. Haji Imtiaz Khan is very critical about the space management in his store as he believes that, “80 out of 100 customers follow the silent guide that we provide them. His philosophy was “if we don't provide the right way to walk, our sales can go down drastically”. He said that the floor is marbled and clean our space strategy must force customer to move within the boundaries of the store. Impulse goods are also kept in the cash counter. Ice Cream and some local chocolates are kept near the cash counter for not only attracting kids also attracting the attention of passers as well. Some other items like personal care products (Facewash) are also kept near the stairs.

Layout/Circulation Plan:

a) Inside store: 

The display and the placements of products catches customer’s eyes and enable them to get

exposed to the entire store offerings. 

b) Lightning and Display Strategy: 

Cosmetics, household and chocolates are highlighted with lightening and displays strategically placed along the aisles which pulls customers traffic from section to section. Each aisle width is planned as per the product type and density of the product pattern in that area. The main aisle is 5ft wide, which then goes to into 8 more aisles each for different product categories.

c) Entrances:

There are two entrants in the main store for kids and women. The circulation pattern followed by Imtiaz Store is “Grid Circulation”. The aisles and fixtures are at the right angle of each other. Imtiaz entrance goes directly to the sweet section and house-hold section, this allow customers to go directly to their destination without moving through the store. 

d) Floor Space Management:

The employees and store owners are working very hard on floor space management for making sure that the customers frequently visit their store.

e) Gross Margin on Footage: 

Each month they check the per square foot merchandise selling and the customer traffic. The hot spots include the rice and staples area. Cold spots include the household items but by adding more varieties of merchandise and imported goods there they are effectively converting it into warm spots.

MERCHANDISING 

Imtiaz Store merchandise hierarchy is widespread. They carry a wide assortment of  products to numerous categories

Hierarchy: 

As a research suggests held in 2014 Imtiaz Store is serving approx. 90,000 customers per day, it caters an assortment of more than 40,000 variations and options. Their largest category is of beauty products that is sub divided into soaps, lotions, creams, face masks, scrubs, fragrances, (body sprays and perfumes for both Men and Women gender), hair care products (shampoos, balms, gels, oils, dyes and conditioners) and dental care (creams, toothpastes, toothpowders, and mouth fresheners). The other divisions confectionary, include chocolates, biscuits, chewing gums, toffees, and chips. Food groceries include pasta (rice, noodles, spaghetti etc.), sauces, cooking oils, and ghee’s, foods, grains, spices, and dairy products (cheese, butter, milk, yoghurts, and ice creams). Under the division of beverages, Imtiaz carries an assortment of tea, coffee, energy drinks, soft drinks, juices (bottled or tetra packs) and milk shakes. other divisions include pharmaceuticals, sanitary, sundry (cigarettes, battery cells, small electrical items, men’s shirts and socks, animal food, and plastic items like combs, brushes etc. and utensils and crockery (also includes decorative items). 

Buying Function: 

a) Open to Buy: 

Imtiaz store has open to buy plan which enables Imtiaz to achieve strategies and the standards of qualities of deliveries to their customers.

b) Forward planning: 

Imtiaz forwards planning by forecasting sales at the end of month (EOM) inventories for specified periods. They pre-plan a stock for one week in advance and they store a week’s stock. The responsibility of the buying function. The buying function of Imtiaz store is segmented into packaged goods and perishable good. This function is structured to meet the needs of the store in managing the wide range of products. 

• Fresh Produce 
• Frozen foods 
• Foods (packaged grocery) 
• Medicines 
• Non-food items (personal products/ Household goods/ General merchandise/ Apparel).

c) Markup/ Markdown: 

No special markup charges at Imtiaz store because Imtiaz store is following a low-cost strategy but there are often markdowns in products/ merchandise like biscuits and sweets. Their markdowns are seasonal like during December when it is wedding or Eid season and any other special occasion like 14th August or Ramzan package. 

d) Shrinkage: 

At Imtiaz Store they face shrinkage but they control this by keeping a manual checking of all the employees as well as customers. Their employees are given special uniforms which they have to wear while they arrive at work their uniforms have no pockets so it lessens the chances of employees shrinkage and they keep their wallets and other things around the counter, . Shrinkage by customers is controlled by proper checking by all the employees at the lower level as well as the middle management level. 

Supply Chain Management at Imtiaz Super Store 

Supply chain management at Imtiaz super store comprises of the following sub-sections 

 Procurement and Distribution 

 Logistics Management 

 Inventory Management 

 Information management

Procurement and Distribution: 

Imtiaz Super Store’s process of procurement involves reducing its purchasing costs as far as possible so that it can offer best price to its customers. The company procures goods directly from the manufacturers, bypassing all intermediaries. Imtiaz Super Store has distribution centers. Imtiaz Super Store’s own warehouses supplies about 80% of the inventory. Each distribution center is divided in different groups depending on the quantity of goods received. The inventory turnover rate is very high, about once every week for most of the items.

Logistics Management:

This involves fast & responsive transportation system. Company owned trucks services the stores. These dedicated trucks enable shipping of goods from distribution centers to the stores within 2 days and replenish the store shelves thrice a week. The drivers hired are all very experienced & their activities are tracked regularly. This allows the drivers to be aware of the terms & conditions for safe exchange of Imtiaz Super Store property. For more efficiency, finished goods are directly picked up from the manufacturing site of supplier, sorted out and directly supplied to the stores. This system reduces handling & storage of finished goods, virtually eliminating role of distribution centers & stores. 

Inventory Management: 

Considering the expansion of Imtiaz Super Store stores, it was essential to have a very good

communication system. Imtiaz Super Store ensures that unproductive inventory is as less as possible, by allowing the stores to manage their own stocks, thereby reducing pack sizes across many categories and timely price markdowns. Imtiaz Super Store makes full use of its IT infrastructure to make more inventories available in case of items that customers wanted most, while reducing overall inventory. By making use of Bar-coding, different processes like efficient picking, receiving & proper inventory control of the products along with easy packing and counting of the inventories was ensured. A Centralized inventory database allows the personnel at the store to find out the level of inventories and location of each product at a given time. It also shows the location of the product like distribution center or transit on the truck. When the goods are unloaded at the store, the inventory system is immediately updated. 

Information Management:

In recent years, Imtiaz Group has achieved growth through an aggressive strategy for opening new stores. While Supermarket sales are a major driver for this strategy, the company’s warehouses had become burdened by poor inventory visibility and control and limited data that compromised its decision making. As an expanding business, they required a modern IT platform that could consolidate their Retail and warehousing operations and foster the planned pace of growth.

 No centralized access to inventory information & availability of proper sales data 

 Inefficient stock monitoring & movement 

 High transaction time at point of sale and system constraint to handle high footfall at store 

 Data existed in siloes at each branch & lead inaccurate inventory calculation 

 Unmanageable data consolidation & audits

For this purpose, iVend Retail Management Suite with SAP Business One was introduced. Benefits of this new system are as follows: 

 iVend Retail enhanced key retail transaction performance at store & increased overall employee efficiency 

 Synchronized data transfers between Stores & enterprise ensured accuracy across Retail chain 

 Allowed to measure sales numbers better and track inventory stock levels efficiently 

 Easy identification of slow moving inventories for improved purchasing decision making

RETAIL MARKETING STRATEGIES

Private Labels:

Imtiaz launched its personal brand PONAM. Imtiaz Store has been popular for providing excellent quality rice under their brand named 'Ponam' rice. Besides rice, Imtiaz store has also provided spices with its brand name. Now many other products like honey, and other grocery items are provided the brand umbrella of Ponam. It has its own factories located in Karachi which helps it to be efficient in providing the required units in time to the store with reduced cost of manufacturing. 

STORE POSITIONING 

Target market

 Includes people from lower to upper classes. 

 traffic on weekends, as it's filled with families who come to the store especially for their weekly grocery and other items.

CONCLUSION AND FORTHCOMING FUTURE

Imtiaz is already a market leading retail store due its everyday low price strategy with addition to efficient and effective value chain network which includes supply chain management, personal brand Ponam, excellent customer service and customer driven policies. Imtiaz is goal orient organization and opening stores across Pakistan and they now cater a bigger market of diverse culture. Future of Imtiaz is in untapped online market which needs to be addressed soon. Sooner this step is taken to tap this opportunity the more fruitful it will be to the owners of Imtiaz.