Our path from dusty farm to superstore success

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Tuesday, January 04, 2011
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This is Derbyshire

AS the blazing sun rose over a picturesque valley in Pakistan, the young brothers walked the dusty road to their parents' farm.

The hot, humid scene could not be any further from that of the streets of Normanton in Derby, but the boys were destined to become known as the men who started Pak Foods.

It is a story told with pride by Mohammed Abdul-Razaq, the 51-year-old co-owner of the company.

From a farming childhood in Pakistan, his family's firm in Derby has grown from one small store to a chain of five superstores across the East Midlands. It has an annual turnover of £28 million and has helped foster a thriving, multi-cultural community in Normanton. It has given away many hundreds of thousands of pounds to charities.

As Mr Abdul-Razaq explained, it was a long journey. Mr Abdul Razaq was part of a big family in Kashmir, Pakistan, growing up with brothers Mohammed Nawaz, 45, Mohammad Ashfaq, 38, Ramzan Akhtar, 42 and Mohammed Altaf, 53.

He said: "We lived on a farm and my father Mohammad Hussain and my mother Maqbool Jan worked to grow food and sell it. We were very self-sufficient."

In 1961, their father moved to the UK, joining many of his fellow countrymen. He had some cousins already in England and got a job in a Lancashire mill.

When he moved to Nottingham 10 years later, taking a job at British Celanese, in Spondon, he was joined by his eldest sons, Mr Abdul-Razaq and Mr Altaf.

Mr Abdul-Razaq, who still lives in Nottingham, said: "We got used to the cold weather fairly quickly. It was customs, ways of behaving, and the language that were the big problems."

Despite this, he and his brother completed their education and began work in Nottingham, he in a restaurant and his brother in a bank.

In 1989, with money borrowed from the family, many of whom had moved to the UK, the two brothers opened their first shop, a convenience store in Radford. Within a year, they had made enough money to open another and to take over a travel agency.

In 1993, their brother Mohammed Nawaz, who now manages Derby's Normanton Road superstore, moved to the UK to help the brothers with their business. In 1995, the brothers decided they wanted something bigger.

Mr Abdul Razaq said: "We had a lot of retail experience and we had a farming background in Kashmir. It was what we knew and we were good at it. We wanted a supermarket and so started looking for a property."

One of his friends recommended Normanton. He said: "The area was clapped out. Half of it was boarded up and it was notorious for drug-dealing. People said if we went there we would blunder. But we saw the potential in the area if we did it right."

He said the Normanton Road property was in a bad state. After being refused by several banks, they turned to family again and borrowed £70,000 to develop Pak Foods.

"We had a lot of credit with suppliers throughout the East Midlands because of the reputation we had built up with the shops. We were given £40,000 worth of credit straight up from one supplier," Mr Abdul-Razaq said.

Eventually, after months of work, the store was ready to open in May 1996. It was an instant success.

The banks that had refused credit to the young company said the store might, if it was lucky, make £8,000 in a week. It made that in its first day.

Mr Abdul Razaq said there were different reasons why the store proved such a draw.

He said: "We were pioneering in a few respects. We decided to have our fruit and vegetable stalls outside the front of the shop, in a sheltered forecourt.

"What this did was put the goods up front, gave the shop a fresh market feel. We became known for cheap fruit and veg and so we attracted hundreds of people from not just Normanton, but all over Derby."

From the beginning, they wanted to sell ethnic foods and appeal to multiple cultures.

He said: "We started to undercut other supermarkets in many common items, like milk, sugar and soft drinks. We were growing popular through word of mouth and spent money on improving the store and keeping prices cheap."

The brothers bought nearby property and expanded the shop into a superstore, with a car park and warehouse. In 2005 they opened a branch in Nottingham, then a shop in Stoke and two in Leicester, the most recent opening in 2010.

Mr Abdul-Razaq said Pak Foods had always been generous with its wealth.

He said: "We have supported all sorts of projects, putting money into schools, churches and business in Derby. We raised £17,000 in three days after the tsunami in 2004, reaching a total of £84,000 across all five shops. and we work with the local mosques and the police, helping victims of domestic abuse, giving them food packages."

The company is planning to open even more stores.

He said: "My brothers and I take a more back-seat role now, giving the reins to the younger nephews but this is very much a family business. And Derby has become that family's home."

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6 Comments

  • Profile image for This is Derbyshire

    by Hopeful for the future, Derby

    Tuesday, January 11 2011, 4:29PM

    “There are so many good lessons to be learnt from this story.

    It's not just about hard work. It's also about generosity of spirit and action, plus taking responsibility rather than complaining.

    To most of us, they seem to have achieved more than any amount of government subsidies and City Council effort over decades. But that's because they are here for the long term, and they know the opportunities as well as the challenges.

    Can they be nominated for a New Years Honour in 2012 please?”

  • Profile image for This is Derbyshire

    by Christopher, Derby

    Tuesday, January 04 2011, 2:27PM

    “Brothers Mohammed Abdul-Razaq and Mohammed Nawaz can attribute much of their success to hard work and following the long standing traditions of market traders, up early in the morning to get to the wholesalers and to buy the best deals in local and imported produce and to sell at competitive prices.

    I shop at the store regularly and they have the most amazing selection of fresh fruit, vegetables and exotic produce that can be found anyhere in Derby. I often recommend the shop to my friends some even travel from the Peak District to shop here.

    I remember when the original grocery shop on this site closed down and was boarded up, the area had become very run down. Now Pak Stores has created the feel of a vibrant community, people of all cultural backgrounds shop at this store. I enjoy shopping here, the staff are always very welcoming and there are always bargains on the shelves.
    Anyone visiting the store will also see references to a number of charitable concerns that the store has backed or is supporting, anything from the floods in Pakistan to local charities and sporting facilities for young people of Normanton.
    Well done! Mohammed Abdul-Razaq and Mohammed Nawaz, keep up the good work!”

  • Profile image for This is Derbyshire

    by Young, Derby

    Tuesday, January 04 2011, 1:35PM

    “They really have injected life into that section of Normanton Road, it has helped the local economy massively.”

  • Profile image for This is Derbyshire

    by ratepayer, derby

    Tuesday, January 04 2011, 10:01AM

    “This article is a prime example of how hard work and business acumen can overcome the greatest odds. Pak Foods was a gift to the area of Normanton which was in almost terminal decline. The brothers and their family have transformed the area whole feel and brought back some vibrancy to Normanton Road. This has been achieved with high quality, fresh foods at reasonable prices much needed especially in these hard times. The charity donations have come in many forms over the years and been largely unknown . Food parcels and help to desperate people as well as the high profile things have gone largely unnoticed. There is much more to do however but if it can be achieved what better example can be found than this one where instead of complaining they got down and did the hard work themselves.”

  • Profile image for This is Derbyshire

    by Tom Fulep, Sinfin

    Tuesday, January 04 2011, 10:00AM

    “My wife and I shop weekly at Pak's for our fruit and veg and save at least a third on supermarket prices. I love the traditional market atmosphere and choice of foods and spices on offer. Since we began shopping there our diet has changed for the better, we cook from scratch regularly and enjoy a better variety of meals.

    Well done Mohammed Abdul-Razaq and the family. I hope you get stronger and stronger.”

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