Expert explains retail business failurefrom @bfmradio

Transcript

You said that basically no one called you to learn lessons from Kadaira Best one Malaysia, which you ran and you said I'm a better failure. 185,000,000 ringgit that you worst. Let's talk a little bit about Madani Mart. Positioned as this community driven retail model that wants to make prices cheaper for people. Supposedly, entrepreneurs will operate the stores under a better, Madani Mart. Yassan Madani, which is the brand order, will do the support rank supply chain systems, retail analytics, and the works. Opening thoughts on this. I was actually shocked when it came out with this so called Madani Mart. My only wish was, why did you just call me for a coffee? I would have given you some pointers. Maybe suggest a better model. So if they had called you, what's the worse you would have given them about this? Don't start opening one in every adult. That is the first failure. That was the main statement I heard, and I say, oh my good. It's gonna fail. Okay? Every adult will have one madani man. That is a political decision, not tier business decision. The business decision will be open 10 in quarantine. So you get tier supply chain. One warehouse for 40 outlets. Another 40 outlet, one warehouse. Supply chain sorted out. We have the volume. We have the the extra worse, 2% here rank tier. And hopefully, you can be very competitive. You know, I'm all for killing the bigger boys. We find it difficult tier even compete with them. I will not mention them, but I think you know why tier talking about because they're just too big. And if we expect a small cadet room cheat, the first one that they've opened in, Quonton is a few doors away from them. Yes. You open first day, everybody sells chicken for the dollar, but what's going to happen? I have a feel of the numbers. The mother tier money is doing 5 to $7,000 tier today. A good day, maybe they can do 10. You are not going to be competitive. If you look at numbers, front margin can be 9%, 10%. Nobody survives at 10%. They all say, oh, my margin, 10%. You no, I mean, even tier be, oh, I'm I hardly make 10%. Nobody best the back margin. If you look at the reports out there, back margin can be six to 7%. And if you open a retail shop like this, they don't have back margins. They're only front. If tier are doing $200,000 business, okay, they get $20,000 cross margin. $20,000 and you imply four staff, that no to a $10,000. You pay rental $56,000. It's too short lot model. You gotta pay $6.07, $8,000. At least for the better. Utility tier blah blah. You sit down, you look at the numbers, don't even bother. I wish them luck. I pray for them, seriously. I don't that it works. I I hope it works. I want to be proven wrong.