Details

Case

HKB Express: The Small Store Big Experiment

Ateeq Abdul Rauf, Arif Iqbal Rana

INDUSTRY : Retail

AREA : Production & Operation Management

ORGANIZATION : HKB Express

LENGTH : 23

LUMS No : 03-846-2011-1

PUBLICATION YEAR : 2011

KEYWORDS:

HKB Express,Haji Karim Baksh,Small Store,Big Experiment,Family Business,Chain Store,Departmental Stores,Competition,Expansion Strategy

DESCRIPTION:

Lahore-based family business HKB operated a chain of large department stores. It was well known for its large store format (40,000 square feet, and 3,000 SKUs) located in two posh areas of the city. Concerned by increased competition due to the advent of foreign players into the modern trade industry, HKB CEO Shehryar Buksh identified a niche area in the retail market and decided to launch two stores on a smaller store format. The case deals with the decision to select an ideal store format (square feet, range of SKUs, etc.) that can be duplicated as part of HKB¿s expansion strategy, merchandizing issues, how to market HKB Express and identification of a suitable location.

LEARNING OBJECTIVES:

1) To allow students to analyze the key drivers of profitability in retail store operations. 2) To discuss key issues in launching a new format of a retial store like location, store size, assortment, human resource, procurement and store layout. 3) To highligh the importance of issues in marketing strategy and positioning in retailing.

SUBJECTS COVERED:

Production, Operations Management