Establishing Chain of Super Markets in Pakistan

1
Establishing Chain of Super Markets in Pakistan

• Introduction
• Need Assessment
• Proposed Project
• Technical Evaluation
• Governance
• Financial Evaluation

2
Chain of Super Markets Introduction

• Evolution of retailing
• Wide range of products, commodities and services
  with companies offering upto 40,000-50,000 items
  at one store
• Importance

3
Chain of Super Markets Need Assessment

• Status of Utility Stores Corporation
• Retail trade in Pakistan
• New Ventures in Retailing
• Makro-Habib Limited
• Metro Group Germany

4
Chain of Super Markets Proposed Project

• The objective of the proposed project is to set
  up three categories of retail outlets 9 large,
  25 medium and 36 small i.e. a total of 70 stores
  in 20 cities/towns of the country in the first
  phase. This number may be doubled or increased
  three or four times with experience. These will
  be supervised by five regional offices with
  warehouses supplying needed goods to the outlets
  in its area.

5
Chain of Super Markets Technical Evaluation

• Different from manufacturing processing
• No need to purchase land
• 3 categories of stores in 20 cities (70 outlets
  in the initial phase)
• Category A 6,000 sq. ft.
• Category B 4,000 sq. ft.
• Category C 2,000 sq. ft.

6
Chain of Super Markets Governance

• Board of Directors to be headed by the Chairman
  and five Directors including Managing Director
• The manpower strength, initially, will be 1270
  personal.
• Important aspects in retailing
• Merchandizing
• Quality control
• Systems
• Brand management
• Operations.
• Above need to be addressed suitably in order to
  operate the business efficiently and profitably

7
Chain of Super Markets Financial Evaluation

• The total investment required is Rs. 381.255
  million
• The project will pay back all its investment in
  2.75 years
• Indicators for Year 5 (in Rs. 000)
• Operating Revenue - 2,225,000
• Operating Profit - 67,100
• Net Profit - 245,937
• R.O.E after Tax - 129.01