Ghouri’s – Navigating Growth in a Competitive Landscape

By: Dr. Mohsin Kazmi, Assistant Professor Sukkur IBA University

PhD in Strategic Management LUISS University, Rome Italy

The authors do not intend to illustrate either effective or ineffective handling of managerial
situations. The authors may have disguised certain names and other identifying information to
protect confidentiality.

On a scorching August afternoon in 2024, Mr. Amir Ghouri sat in his office 4th floor at Jillani
Road, Sukkur, wiping beads of sweat from his brow as the air conditioning sputtered in the
45°C heat. The once comforting hum of the office, now quiet and stifling, seemed to mirror the
weight of the decisions pressing down on his shoulders. Sipping a lukewarm cup of Macchiato,
Amir gazed out the window at the bustling city of Sukkur, a city his family had been intertwined
with for generations. His thoughts, however, were far from the noise of the streets below.

As the sixth-generation leader of Ghouri’s, Amir had always taken pride in carrying forward
the family’s legacy—a legacy built on the foundation of their clothing business. But today, that
legacy seemed more fragile than ever. The clothing store, which had been the bedrock of his
family’s success, was struggling. Nestled in a congested old market, it had become increasingly
difficult to draw in customers, many of whom now preferred more accessible and modern
shopping options. Meanwhile, the supermarket and restaurant ventures he had spearheaded
showed promise but were strained by financial constraints, a direct result of the economic
downturn gripping the country.

In that sweltering office, Amir found himself at a crossroads. The family business had always
been more than just a livelihood; it was a symbol of resilience, tradition, and honor. But as he
sat there, contemplating the future, Amir knew that the decisions he made in the coming days
could either secure the company’s legacy for another generation or signal the end of an era.
Should he double down on the clothing business that had sustained his family for so long? Or
should he invest in expanding the supermarket and restaurant ventures that could lead Ghouri’s
into the future? The answers weren’t clear, but one thing was certain: the weight of his family’s
legacy had never felt heavier.

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Company Background
For generations, Ghouri’s had proudly stood as a family-owned retail company deeply rooted
in the Sukkur and Upper Sindh region of Pakistan. Since 1948, the name Ghouri had been
synonymous with quality and outstanding customer service, earning the trust and loyalty of its
customers. The company operated a diverse portfolio of businesses, including Ghouri Cloth
House, Ghouri's Department Store, Ghouri’s’s Supermarket Chain, Villa by ICON Boutiques,
and The Courtyard Café.

Throughout the years, Ghouri’s had maintained its dedication to serving customers with
warmth, a smile, and honesty, reinforcing its reputation as a trusted name in the region (See
Exhibit 01 for Business Philosophy). This customer-centric approach, coupled with a legacy
of excellence, had positioned Ghouri’s as a favorite among customers in Sukkur and beyond.

The multi-faceted family-owned business that had evolved from a single clothing store into a
diversified portfolio of retail and hospitality ventures. The company operated across three main
industries: the clothing industry, the supermarket sector, and the restaurant business (See
Exhibit 02 for details of business portfolio). Each of these sectors played a crucial role in the
company's overall strategy and market presence. (See Exhibit 03 for relative market share)

Clothing Industry:

Ghouri’s roots were firmly planted in the clothing industry, where the company built its
reputation over six generations. The clothing business was divided into two main entities:

• Ghouri Cloth House: Located in main Shahi Bazar Sukkur, This was the flagship store
where the Ghouri family initially made its mark in the retail sector. Known for its high-
quality fabrics and traditional offerings, Ghouri Cloth House had been a trusted name
in the market for decades.
• The Villa Boutique: Located in Sindhi Muslim Housing Society, The Villa Boutique
offered a more exclusive and upscale shopping experience. The boutique focused on
ready-to-wear clothings and caters to a clientele that values both style and quality. The
boutique had become a go-to destination for fashion-conscious customers in the region.

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Supermarket Business:

Expanding beyond clothings, Ghouri’s entered the supermarket sector in 2011, establishing a
chain of supermarkets that cater to the diverse needs of the Sukkur community. The
supermarket business was organized under the following entities:

• Ghouri Departmental Store: This store serves as the anchor for the company's
supermarket operations, offering a wide range of personal care products.
• Ghouri’s's Supermarket Branches:
o Minara Road Branch (Main Branch): This branch was strategically located to
cater to the local community's needs, offering a variety of products, including
bakery items and fresh produce.
o Shikarpur Road Branch (Friends Mart): Known for its focus on convenience,
this branch provided a comprehensive shopping experience with a strong
emphasis on customer service.
o Sindhi Housing Society Branch (The Villa): This branch, housed in a bungalow-
style building, offered a unique shopping experience. It combined the charm of
a traditional store with the modern amenities of a supermarket.

Restaurant Business:

Ghouri’s also ventured into the hospitality sector with a focus on providing quality dining
experiences. The restaurant business operated under two main entities:

• The Courtyard Café: A cozy café that became a popular spot in Sukkur, offering a
limited but high-quality menu. The café focused on providing a relaxed atmosphere
with a variety of light meals and beverages.
• The Courtyard Bakery (Piece of Cake): Offering a range of baked goods and specialty
items. The bakery became well-known for its fresh, high-quality products especially
breads and gained a loyal customer base.

CEO Background: Amir Ghouri

Amir Ghouri was the sixth-generation leader of Ghouri’s, a family-owned business with deep
roots in the retail and clothing industry. Born into a family of retailers, Amir’s early exposure
to the business world came naturally. His family had been involved in the clothing retail
business for over a century, and Amir was destined to follow in their footsteps. However, his

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journey to becoming the CEO of Ghouri’s was shaped by both tradition and innovation, as well
as a strong sense of responsibility towards his family's legacy.

Confident and down-to-earth, Amir was known for his ability to connect with people. He
greeted everyone by name, whether they were long-time employees or new hires. His
leadership style was a blend of decisiveness and inclusiveness, drawing on the advice of his
wife and both daughters, all of whom he deeply trusted. Yet, when it comes to making critical
decisions, Amir often relies on his own instincts—a trait he inherited from his father.

Amir’s decision-making was also heavily influenced by the values instilled in him by his father.
He vividly recalled a conversation where his father drilled him on the concept of
"kholuseniyat." This term, which emphasized open and positive intentions toward customers,
became a guiding principle for Amir. "Our goal," his father had said, "is to make customers
happy, not just to chase profits." This philosophy shaped every aspect of Amir’s approach to
business.

Beyond his business acumen, Amir was a seasoned traveler. His journeys, both domestic and
international, had provided him with a wealth of knowledge and inspiration. Whether it’s
adopting eco-friendly practices from Africa or modernizing checkout counters based on his
observations in the U.S., Amir was always looking for ways to integrate what he learned into
Ghouri’s. His travels had not only broadened his perspective but had also helped him stay ahead
of market trends and innovate within the company.

Despite his confidence and success, Amir remained deeply committed to his family’s legacy.
The weight of maintaining that legacy, especially in the face of modern challenges, was
something he carried with him daily. Yet, his father’s teachings reminded him that the true
measure of success was not just in the profits earned but in the satisfaction of the customers
and the positive impact on the community.

Amir’s relationship with his son also played a significant role in shaping his outlook. Although
his son is still young, Amir envisions a future where the next generation will take the reins.
This long-term perspective influences his decisions today—he’s not just thinking about
immediate profits but about leaving a sustainable and thriving business for his son to inherit.

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As Amir sat down to make his next big decision—whether to double down on the clothing
business or expand the supermarket and restaurant ventures—he knew that the stakes were
high. But he also knew that whatever path he chose, it will be one that reflected both his
family’s values and his vision for the future of Ghouri’s.

Market and Industry Dynamics

Overview of Sukkur's Economic Landscape:

Sukkur, located in the Sindh province of Pakistan, had historically been a hub for trade and
commerce due to its strategic location along the Indus River. With a population of
approximately 1.5 million, the city serves as a vital link between the rural areas of Sindh and
the major urban centers like Karachi. Sukkur's economy had traditionally relied on agriculture,
trade, and small-scale industries, with its markets serving as key distribution points for goods
moving between the northern and southern regions of Pakistan.

However, like much of Pakistan, Sukkur had not been immune to the economic challenges that
have plagued the country in recent years. High inflation, currency devaluation, and rising costs
of living have significantly impacted the purchasing power of the local population. As a result,
businesses in the city have had to adapt to a more price-sensitive consumer base, and many
industries are feeling the pressure to offer more competitive pricing while maintaining quality.

Impact on Retail Sector:

The retail sector in Sukkur, much like the rest of Pakistan, undergone significant
transformation due to changing economic conditions. Traditionally, retail in Sukkur was
dominated by small, family-owned businesses like Ghouri’s, which thrived by offering
personalized customer service and high-quality products. However, with the rise of modern
retail formats and increased competition, the retail landscape become more fragmented.

The economic downturn exacerbated these challenges. Consumers in Sukkur, who were once
willing to pay a premium for quality products, are now more focused on finding value for
money. This shift led to increased competition among retailers, both local and national, who
are vying for the same pool of price-conscious customers. Many consumers are also opting to
shop in larger cities like Karachi, where they perceive they can get better deals and a wider
variety of products.

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This shift in consumer behavior posed a significant challenge for premium retailers like
Ghouri’s, which built its reputation on offering high-quality products. The company's
supermarkets and clothing stores, once considered go-to destinations for discerning customers,
are now facing declining foot traffic as consumers look for cheaper alternatives.

Clothing Industry Dynamics:

The clothing industry in Pakistan always been a key contributor to the national economy, with
both small-scale retailers and large manufacturers playing important roles. In cities like Sukkur,
clothing businesses have traditionally catered to local tastes, offering a mix of traditional and
contemporary clothing.

For Ghouri’s, the clothing business been the cornerstone of the family’s success for six
generations. However, the industry become increasingly competitive, with new entrants
offering lower-priced alternatives and branded stores capturing market share. The location of
ICON’s clothing store in a congested area of Sukkur also become a liability. The store’s
traditional market location, once a bustling hub, is now seen as inconvenient for customers who
prefer more accessible shopping destinations. As a result, the store struggled to retain its long-
time customers, many of whom have moved to larger cities like Karachi.

Additionally, the rise of online shopping introduced new challenges. Consumers now have
access to a wide range of options at their fingertips, and many are opting for the convenience
of online shopping over visiting physical stores. This shift forced traditional retailers like
Ghouri’s to rethink their strategies and explore ways to adapt to the changing market dynamics.

Supermarket Industry Dynamics:

The supermarket industry in Pakistan is relatively young but grown rapidly in recent years,
driven by increasing urbanization and changing consumer preferences. Supermarkets offer
convenience, variety, and a modern shopping experience that appeals to the country’s growing
middle class. In cities like Sukkur, where traditional markets have long dominated, the
introduction of supermarkets been a game-changer.

Ghouri’s entered the supermarket industry in 2011, capitalizing on this trend by offering a
modern retail experience that catered to the needs of Sukkur’s urban population. The
company’s supermarkets quickly gained popularity for their wide range of products, customer

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service, and convenient locations. However, the economic downturn affected this sector as
well. Rising costs and declining disposable incomes have made it difficult for supermarkets to
maintain profitability. Consumers are increasingly opting for discount stores or making bulk
purchases to save money, which put pressure on retailers to offer competitive pricing without
compromising on quality.

In response to these challenges, Ghouri’s had to pause its plans for expansion and franchising.
The company’s three supermarket branches in Sukkur—Minara Road, Sindhi Housing Society,
and Shikarpur Road—continue to serve their local communities, but the financial constraints
have made it difficult to invest in new inventory, marketing, or additional branches.

Restaurant Industry Dynamics:

The restaurant industry in Pakistan, like many other sectors, faced its own set of challenges
due to the economic climate. Rising food costs, fluctuating energy prices, and reduced
consumer spending have made it difficult for restaurants to maintain profitability. However,
the demand for dining out not completely disappeared, especially among the urban population
that views eating out as a form of entertainment and socializing.

Ghouri’s ventured into the restaurant business with The Courtyard Café and The Courtyard
Bakery and Café. These establishments offer a limited but carefully curated menu, focusing on
quality over quantity. The café and bakery have carved out a niche for themselves in Sukkur,
attracting a loyal customer base that values the high-quality food and cozy atmosphere.
However, like the supermarket business, the restaurant sector not been immune to the
economic downturn. Rising costs have put pressure on margins, and the company had to
balance maintaining quality with keeping prices affordable for its customers.

Despite these challenges, the café and bakery have shown resilience, continuing to attract
customers even in tough economic times. The success of these ventures provided a glimmer
of hope for Ghouri’s, as they explore ways to expand their offerings and tap into new markets.

Competitive Landscape and Strategic Positioning

Ghouri’s began as a pioneer in the region of northern Sindh and southern Punjab, establishing
the first supermarket of its kind. At the time, the concept of a modern supermarket was unheard
of outside the major cities like Karachi, Lahore, and Islamabad. The company’s early success
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was largely attributed to its ability to fill a significant gap in the market. By offering a wide
range of products in a modern, air-conditioned setting, Ghouri’s quickly differentiated itself
from the small retailers that dominated the local landscape. These smaller shops typically
offered lower-priced, lower-quality products, and Ghouri’s initially had little concern about
them as direct competitors.

However, as time passed, the competitive landscape evolved. In the clothing sector, the
company faced increasing pressure from branded stores like Gul Ahmed, J., Nishat and Khaadi.
These brands, which had once supplied their products to Ghouri Cloth House, began opening
their own outlets in Sukkur and nearby regions. As a result, they stopped supplying their
products to Ghouri Cloth House, citing the limited market size in Sukkur as the reason. This
shift forced Ghouri’s to rethink its strategy, leading to the creation of The Villa Boutique. This
upscale boutique was an attempt to create and promote Ghouri’s’s own brand, focusing on
quality and exclusivity to retain its customer base.

In the supermarket sector, the competition intensified as more options have become available
to customers. Emerging players like 7-Eleven, Bin Safeer Super Market, Sindh Super Store,
Al-Asif Mart, and the upcoming Max Bachat stores are giving Ghouri’s a run for its money.
These smaller supermarkets and marts operate with lower overheads, occupying smaller spaces
without the need for air conditioning. This allows them to cut down on margins and offer more
competitive pricing, which appeals to the increasingly price-sensitive customers in the region.
The presence of these competitors eroded some of the market share that Ghouri’s once enjoyed
as the sole supermarket in the area.

The restaurant industry in Sukkur is also fiercely competitive. Ghouri’s’s ventures, The
Courtyard Café and The Courtyard Bakery, face stiff competition from established local
favorites like Royal Taj Hotels, Sindhri Restaurant, and Sajjad Restaurant. These
establishments offer a variety of cuisines and fine dining experiences that appeal to a broad
range of customers. As a result, Ghouri’s’s restaurants/café must continuously innovate and
maintain high standards of quality to stay competitive.

From a market dynamics perspective, Ghouri’s operates in an environment where customers

have significant bargaining power due to the wide array of choices available to them. The

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suppliers, particularly in the clothing industry, also wield considerable power, as they can
choose to supply directly to consumers through their own branded stores. The threat of new
entrants is high, as it is relatively easy to start smaller retail or restaurant setups and gradually
expand. An example of this is a small grocery store located right in front of The Villa, which
started as a modest operation but managed to attract more footfall than The Villa itself in terms
of grocery shopping.

Despite these challenges, Ghouri’s’s success largely been attributed to its ability to adapt to
market changes while maintaining a strong focus on quality and customer satisfaction.
However, with new competitors entering the market offering similar products at lower prices,
the company’s traditional approach is being tested like never before. The strategies that once
worked well, such as being the first mover in the region and focusing on premium quality, are
now under pressure as the competitive landscape becomes more crowded and price-driven.

Moving forward, Ghouri’s must navigate these competitive pressures by leveraging its strong
brand reputation, customer loyalty, and commitment to quality. The company may need to
explore new strategies, such as further developing its own brands, enhancing the customer
experience, and finding ways to offer more value without compromising on quality. The
choices Amir Ghouri makes in the coming months will be crucial in determining whether
Ghouri’s can maintain its leadership position in the market or if it will need to redefine its
approach in response to the evolving competitive landscape.

Challenges Faced by CEO

The original Ghouri Cloth House, located in a densely packed and older part of Sukkur, faced
significant challenges due to its location. The congested streets make it difficult for customers
to access the store, especially by car, which led to a steady decline in foot traffic. What was
once a thriving hub of activity now become a liability in a city that increasingly values
convenience and accessibility.

With alternative shopping destinations that offer easier access and a broader range of products,
the clothing business is losing its competitive edge. The decline in foot traffic not only affected
sales but also eroded the store’s long-standing reputation as a go-to destination for quality

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fabrics. This challenge raises a critical question: should Amir consider relocating the store to a
more accessible area, despite the financial strain it may cause, or should he focus on revamping
the existing location to attract customers back?

The market dynamics in Sukkur are changing rapidly, with customers increasingly gravitating
toward larger cities like Karachi for their shopping needs. Many long-time loyal customers,
who once sought premium products from Ghouri’s, have moved away or have found alternative
shopping options. On the other hand, efforts to attract price-sensitive customers by offering
lower-priced clothings have not yielded the desired results, as these customers prefer shopping
in areas with more variety and competitive pricing.

This shift in customer behavior presents a significant challenge for Amir. The company’s
traditional customer base is dwindling, and attempts to capture a new segment have fallen short.
This leaves Amir with a strategic dilemma: Should he continue trying to cater to price-sensitive
customers, or should he double down on the premium market segment, perhaps by enhancing
the brand’s exclusivity or introducing new product lines?

The economic downturn put considerable pressure on Ghouri’s’s finances. While the
supermarket and restaurant businesses show potential, they require substantial investment to
grow and expand. However, the company’s financial resources are limited, forcing Amir to
make tough decisions about where to allocate funds. Expansion plans, including opening new
branches and adopting a franchising model, have been put on hold due to these financial
constraints.

This financial strain creates a dilemma for Amir. Should he prioritize investing in the
supermarket and restaurant businesses, which have shown resilience and growth potential, or
should he focus on stabilizing the clothing business, which been the cornerstone of the family’s
legacy? Balancing these competing priorities will be key to ensuring the company’s long-term
sustainability.

The competitive landscape across all of Ghouri’s’s business segments intensified. In the
clothing sector, branded stores like Gul Ahmed and Khaadi have entered the market, reducing
the availability of premium products for Ghouri Cloth House. Meanwhile, in the supermarket
sector, new entrants with lower overheads and aggressive pricing strategies are eroding market

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share. The restaurant business, while successful, also faced stiff competition from well-
established local eateries.

The rise in competition forces Amir to rethink his business strategies. Should he focus on
differentiation by emphasizing quality and customer service, or should he adopt a more
aggressive pricing strategy to compete with new entrants? Moreover, Amir must consider
whether to continue operating in all three sectors or to concentrate on the most promising areas,
potentially divesting from less profitable segments.

Ghouri’s’s diverse portfolio, spanning the clothing, supermarket, and restaurant sectors, has
historically been a strength. However, the current market conditions have made diversification
a double-edged sword. Each business segment requires significant attention and investment,
and spreading resources too thin could jeopardize the company’s overall stability.

Amir faced a tough decision: should he continue diversifying across multiple sectors, or should
he streamline operations and focus on the most profitable areas? The need to maintain a balance
between innovation and tradition further complicates this decision. Amir must decide whether
to continue expanding the newer ventures, such as the supermarket and restaurant businesses,
or to refocus on the family’s traditional clothing business, which has been the backbone of their
success for generations.

These challenges place Amir Ghouri at a critical juncture. The decisions he makes in the
coming months will shape the future of Ghouri’s and determine whether the company can
sustain its legacy while navigating the complexities of a rapidly changing market. Balancing
tradition with innovation, managing financial constraints, and responding to competitive
pressures will require careful consideration and strategic foresight.

Looking Forward
As Amir Ghouri sits in his office, wiping the sweat from his brow in the sweltering heat, the
choices before him are complex and fraught with risk. Should he reinvest in the clothing
business that has been the cornerstone of his family's success, even as it struggles to compete
in a changing market? Or should he double down on the supermarket and restaurant ventures
that show promise but require significant resources to expand? The stakes are high, not only
for the survival of the business but for the continuation of a legacy that has been passed down
from father to son for over a century.

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Amir knows that whatever path he chooses, it will define the future of Ghouri’s. His decisions
will determine whether the company can navigate the challenges of a rapidly evolving market,
maintain its reputation for quality and customer satisfaction, and secure its place in the
community for generations to come. The future of his family’s legacy—and the livelihoods of
countless employees and customers who depend on Ghouri’s—rests on his shoulders.

In the end, Amir’s choices will reflect not only his business acumen but the values his father
instilled in him: the commitment to making customers happy, the responsibility to contribute
positively to society, and the unwavering belief that true success is measured not just in profits,
but in the impact made on people's lives. As he moves forward, Amir must balance the demands
of tradition and innovation, ensuring that Ghouri’s continues to thrive in a world that is
constantly changing.

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Exhibit 01: The Business Philosophy of Ghouri’s
The business philosophy of Ghouri’s is deeply rooted in the values and traditions passed down
through six generations of the Ghouri family. This philosophy is not just a set of abstract
principles; it is a way of life that influences every decision the company makes. The core of
this philosophy can be encapsulated in two main pillars: Being Part of the
Solution and Learning and Adapting through Travel.

1. Being Part of the Solution

The guiding principle of the Ghouri family has always been to "be part of the solution." This
value was instilled in the family by Amir Ghouri's father and grandfather and has been passed
down through generations. It reflects a broader outlook on life that extends beyond business,
emphasizing the importance of contributing positively to society.

• Family Motto: The motto of "being part of the solution" is not limited to business
decisions but is a cornerstone of the family’s approach to life. This philosophy is
reflected in the company’s customer-centric approach, where the goal is not just to sell
products but to solve problems for customers. For instance, when customers expressed
frustration over the lack of certain products in their neighborhoods, Ghouri’s responded
by opening branches that catered to specific community needs. One branch included a
bakery because there was none nearby, while another added a coffee shop for the same
reason.
• Philanthropy: The Ghouri family believes that being part of the solution extends
beyond business. They have a long tradition of engaging in philanthropic activities,
driven by the belief that wealth should be used to benefit society. This aligns with their
religious values, which emphasize the importance of Zakat (charitable giving) and
helping those in need. Amir Ghouri's simple lifestyle reflects this commitment to giving
back to the community.
• Employee Well-being: Amir Ghouri also views his employees as key stakeholders in
the business. He believes in creating a conducive work environment where employees
feel valued and connected to the company’s mission. This approach is part of the
broader philosophy of solving problems—not just for customers, but for everyone
associated with the company.

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2. Learning and Adapting through Travel

Another pillar of the Ghouri family’s business philosophy is the emphasis on learning through
travel. Amir Ghouri, his father, and his grandfather all traveled extensively, both domestically
and internationally. These experiences have had a profound impact on the way they view
business and have led to the adoption of new ideas and practices.

• Inspired by Bangkok: One of the most significant influences on Amir Ghouri’s

decision-making came from a trip to Bangkok, Thailand. During his visit, he
encountered a floating raft hotel on the River Khoi, a unique business that offered an
extraordinary experience in a remote location. The success of this business inspired
Amir to think beyond the traditional clothing business and explore new ventures. Upon
returning to Pakistan, he decided to launch ICON, a supermarket chain that introduced
modern retail experiences to Sukkur.
• Eco-friendly Packaging: During another trip, this time to an African country, Amir
observed the use of tote bags made from large sugar bags. Recognizing the potential
for environmental impact, he implemented a similar initiative at Ghouri’s. The
company began converting bulk sugar bags into reusable shopping bags, replacing
traditional plastic bags. This environmentally conscious decision was a direct result of
Amir’s travels and his desire to adopt practices that are both ethical and practical.
• Checkout Counters from Kohl’s: While visiting Kohl’s in the United States, Amir
noticed that their checkout counters were clean and free of merchandise—a stark
contrast to the cluttered counters typically seen in Pakistani stores. He realized that
cluttered counters could lead to frustration for customers waiting in line, so he adopted
this clean checkout counter approach for Ghouri’s, enhancing the customer experience.

3. Decision-Making Process

The decision-making process at Ghouri’s is deeply intertwined with the family’s values. When
Amir’s father was in charge, decisions were made through ongoing discussions between father
and son. Even casual conversations at family dinners often revolved around business matters.
This tradition continues today, although with some differences.

• Family Involvement: Amir’s son is still young, so most business decisions are now
discussed with his managers and occasionally with his wife, who is well-educated and

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 provides valuable input. Amir also seeks perspectives from extended family members,
especially younger relatives, to ensure that decisions are well-rounded and forward-
thinking.
• Vendor Relations: Ghouri’s places great emphasis on maintaining strong relationships
with its suppliers and vendors. Amir recognizes that the way his managers interact with
suppliers directly impacts the company’s reputation. Realizing the importance of
personal relationships, he implemented a system to stay in direct contact with suppliers
through personalized newsletters and communication channels.

4. Philosophy in Action

The Ghouri family’s philosophy is more than just words; it is evident in their everyday business
practices. For example, when the company’s supermarkets faced challenges due to the growing
number of suppliers, Amir recognized the need for a more structured approach to vendor
management. This realization led to the creation of a system that allowed for better
communication and relationship-building with suppliers, ensuring that their needs and
concerns were addressed promptly.

Another example is the family’s approach to community engagement. The Ghouri family
doesn’t just see their business as a way to make money; they view it as a means to contribute
to the well-being of their community. Whether it’s through charitable donations or by providing
services that meet the specific needs of different neighborhoods, Ghouri’s is a company that
strives to make a positive impact.

Source: Company Documents and Interview Transcript

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Exhibit 02: Various businesses of Ghouri’s along with their key offerings
Business
Entity Name Offerings/Products
Sector
Clothing Ghouri Cloth House High-quality fabrics, traditional clothing
Industry The Villa Boutique Ready-to-wear clothings, fashion accessories, exclusive and upscale clothing
Ghouri Departmental
Wide range of products including groceries, home goods, and personal care items
Store

Ghouri’s's Supermarket
Bakery products, fresh produce, groceries, electronics, cosmetics, etc.
(Minara Road)
Supermarket
Sector Ghouri’s's Supermarket
(Sindhi Housing Comprehensive shopping experience with a focus on customer service, wide range of products
Society)
Ghouri’s's Supermarket
(Shikarpur Road/The Unique shopping experience in a bungalow-style building, groceries, household items, etc.
Villa)
The Courtyard Café High-quality light meals, beverages, relaxed dining atmosphere
Restaurant
Sector The Courtyard Bakery
Baked goods, specialty items, combination of bakery and café offerings
and Café
Baby Care, Bakery Products, Books & Stationery, Cosmetics, Detergents and Cleaners, Electrical
Implements, Food Items, Home Care, Luggage and Travel Gear, Pet Foods, Toiletries, Baby Milk &
Product Categories (Supermarkets)
Foods, Beverages, Crockery, Cutlery, Electronics, Frozen Food, Grocery, Ice Cream & Candy Shop,
Personal Care, Plastics Ware, Underclothings
Menu Offerings (The Courtyard Café) BBQ, Desi (Traditional), Roti (Breads), Snacks, Desserts, Pasta & Noodles, Burgers & Wraps, Steak

Source: Company Website

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Exhibit 03: Ghouri’s Market Share Across Various Businesses Compared to CompeItors
Ghouri’s
Business Key Market Key Market
Market Share Market Trends/Challenges
Segment Competitor 1 Share (%) Competitor 2 Share (%)
(%)
Clothing Ideas by Gul Increased preference for branded
15% 25% Nishat Linen 20%
Business Ahmed products
Supermarket Bin Safeer Rising competition from local
20% Al Asif Mart 25% 22%
Business Super Mart supermarkets and price sensitivity
Restaurant Sindhiri Sajjad Intense competition from established
5% 30% 25%
Business Restaurant Restaurant fine-dining restaurants

Source: Best estimation of the CEO.

Exhibit 04: Customer SegmentaIon Table - Ghouri's target market and their changing preferences.
Customer Segment Percentage of Total Key Characteristics Changing Preferences/Trends
Customers (%)
Loyal Long-term 40% Traditional, value quality over price Gradual shift towards branded products
Customers and convenience
Middle-Income 35% Price-sensitive, looking for value-for-money Increasing preference for competitive
Families deals pricing and promotions
Younger Generation 25% Tech-savvy, brand-conscious, and value Preferring online shopping and branded
modern shopping experiences retail outlets

Page 17 of 21
Exhibit 05: Financial Statements for Ghouri’s (2021-2024)

Annual Income Statements (2021-2024) till July 2024

All figures are in PKR Millions

Particulars 2021 2022 2023 2024

Revenue
Clothing Business 300.0 260.0 225.0 210.0
Supermarket Business 312.0 343.0 377.0 416.0
Restaurant Business 10.0 50.0 60.0 65.0
Total Revenue 622.0 653.0 662.0 691.0
COGS
Clothing Business 195.0 169.0 146.3 136.5
Supermarket Business 187.0 206.0 230.0 253.0
Restaurant Business 12.0 30.0 40.0 48.0
Total COGS 394.0 405.0 416.3 437.5
Gross Profit 228.0 248.0 245.8 253.5
Operating Expenses
Salaries & Wages 48.6 53.0 57.0 65.0
Rent & Utilities 65.2 72.6 85.2 90.3
Marketing & Advertising 1.0 1.3 1.4 1.5
Maintenance & Repairs 2.1 2.6 3.1 3.3
Total Operating Expenses 116.9 129.5 146.7 160.1
Operating Profit 111.1 118.5 99.1 93.4
Other Income 1.2 1.2 1.6 1.8
Net Profit Before Tax 112.3 119.7 100.7 95.2
Tax Expense 32.6 34.7 35.2 33.3
Net Profit 79.7 85.0 65.4 61.9

Source: Prepared by Author(s)

Page 18 of 21
Balance Sheet (2021-2024)
All figures are in PKR Millions

PARTICULARS 2021 2022 2023 2024

ASSETS
CURRENT ASSETS
CASH & CASH EQUIVALENTS 60.08 82.4 75.6 68
INVENTORY 120 130 135 140
ACCOUNTS RECEIVABLE 50 55 60 65
TOTAL CURRENT ASSETS 230.08 267.4 270.6 273
NON-CURRENT ASSETS
PROPERTY, PLANT & EQUIPMENT 200 210 220 230
TOTAL NON-CURRENT ASSETS 200 210 220 230
TOTAL ASSETS 430.08 477.4 490.6 503
LIABILITIES
CURRENT LIABILITIES
ACCOUNTS PAYABLE 60 65 70 75
ACCRUED EXPENSES 20 25 30 35
TOTAL CURRENT LIABILITIES 80 90 100 110
EQUITY
OWNER’S EQUITY (FAMILY INVESTMENT) 310 315 320 325
RETAINED EARNINGS 40.08 62.4 70.6 73
TOTAL EQUITY 350.08 377.4 390.6 398
TOTAL LIABILITIES & EQUITY 430.08 477.4 490.6 503

Source: Prepared by Author(s)

Page 19 of 21
Cash Flow Statement (2021-2024)
All figures are in PKR Millions

PARTICULARS 2021 2022 2023 2024

OPERATING ACTIVITIES
NET PROFIT BEFORE TAX 125.08 141.4 131.6 125
ADJUSTMENTS FOR:
DEPRECIATION 10 11 12 13
WORKING CAPITAL ADJUSTMENTS
(INCREASE)/DECREASE IN INVENTORY -10 -10 -5 -5
(INCREASE)/DECREASE IN RECEIVABLES -5 -5 -5 -5
INCREASE/(DECREASE) IN PAYABLES 10 5 5 5
NET CASH FROM OPERATING ACTIVITIES 130.08 142.4 138.6 133
INVESTING ACTIVITIES
PURCHASE OF PROPERTY & EQUIPMENT -10 -10 -10 -10
NET CASH USED IN INVESTING ACTIVITIES -10 -10 -10 -10
FINANCING ACTIVITIES
DIVIDENDS PAID TO FAMILY -60 -50 -53 -55
NET CASH USED IN FINANCING -60 -50 -53 -55
ACTIVITIES
NET INCREASE IN CASH 60.08 82.4 75.6 68

Source: Prepared by Author(s)

Page 20 of 21
Academic References:

1. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of

Management, 17(1), 99-120.
2. Ghemawat, P. (2001). Distance still matters: The hard reality of global
expansion. Harvard Business Review, 79(8), 137-147.
3. Gulati, R. (2007). Silo busting: How to execute on the promise of customer
focus. Harvard Business Review, 85(5), 98-108.
4. Porter, M. E. (1979). How competitive forces shape strategy. Harvard Business
Review, 57(2), 137-145.
5. Prahalad, C. K., & Hamel, G. (1990). The core competence of the
corporation. Harvard Business Review, 68(3), 79-91.

News Articles:

6. Bloomberg. (2022). Retail's next challenge: Navigating post-pandemic consumer

behavior. Bloomberg. Retrieved from https://www.bloomberg.com
7. Dawn News. (2022). How inflation is reshaping consumer behavior in
Pakistan. Dawn News. Retrieved from https://www.dawn.com
8. Reuters. (2023). Pakistan's struggling economy and its impact on family-owned
businesses. Reuters. Retrieved from https://www.reuters.com
9. The Express Tribune. (2023). Pakistan's retail sector faces growing pains amid
economic downturn. The Express Tribune. Retrieved from https://tribune.com.pk
10. The News International. (2023). Supermarket wars: How local retailers are competing
with global chains in Pakistan. The News International. Retrieved
from https://www.thenews.com.pk

Company Websites:

11. Ghouri’s. (n.d.). Company Overview and Offerings. Retrieved from https://ghouri.pk
12. Ghouri’s. (n.d.). Supermarket and Restaurant Ventures. Retrieved
from https://www.iconbyghouris.com

Previously Published Cases:

11. Hussain, A., & Hashim, N. (2013). Icon: Growth challenges. Global Business
Management Review (GBMR), 5(Special Issue (2)), 113-126.
12. Umrani, W. A., Doudpota, A. K., & Ahmed, U. (2016). ICON stores: Managing a
new business venture. Emerald Emerging Markets Case Studies, 6(1), 1-20.

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