He may shun the spotlight, but the Poundstretcher boss has drawn the industry’s attention with plans to expand into the Middle East.

Poundstretcher

A very private man who likes to keep out of the media spotlight, one retail peer describes him as a “very mild mannered, polite gentleman”.

However, despite the passive picture painted by some, others say he is not afraid to make tough decisions, as his turnaround of the troubled Poundstretcher business has demonstrated.

Another industry source says:

“As he took over, he brought in his own people and to get the business straight he’s had to close shops, while he didn’t believe in spending money.

“When he came along everyone was trying to hang onto their jobs, and he was always seen as the barbarian of the business.”

Whichever persona is to be believed in, his strategy of revitalising the ailing business cannot be argued with. Tayub is now planning to take Poundstretcher to the Middle East, making it the first value variety store business to try its hand at retailing outside the UK and Ireland, as revealed by Retail Week last week. Rivals Poundland and 99p Stores have only got as far as Ireland.

Poundstretcher makes its overseas debut in Dubai at the end of the month and plans another six within the Middle East. Tayub’s ambitious expansion strategy also includes the UK, where he intends to add 100 stores in the next year, and eventually expand the 400-store business to 900 in this country alone. He is also leading a much needed refresh of the stores.

This has all been made possible by building a solid financial base. Tayub bought the loss-making retailer for “pence” in 2007, according to one source. Since that time, he has worked hard at restoring profitability, and in its most recent set of accounts, for the year to April 2, 2011, Poundstretcher made its first profit since 2005, generating earnings of £1.4m against the previous year’s £6.7m loss. Sales dropped, however, to £308.2m from £328.1m the previous year.

Returning Poundstretcher to profit is “quite an achievement,” says the industry source.

By the time Tayub took a 30% stake in Poundstretcher through his Seaham Investments vehicle, a property subsidiary of Crown Crest, the retailer had suffered an expensive and ineffective rebrand, designed to communicate a more upmarket value offering under the Instore fascia.

Soon after Tayub bought the business, he appointed Peter Burdon to chief executive, replacing Trevor Coates who had formerly helped establish Aldi in the UK. Tayub later took a non-executive role before increasing his share in the company to 75.8% in 2008, reportedly against the wishes of the existing directors, according to Retail Week Knowledge Bank. A further shake-up ensued, and Burdon exited the business in 2008, resulting in Tayub taking the helm of Poundstretcher as joint chairman and chief executive.

The instability continued. Former Netto managing director Charles Kay was hired as chief executive and he lasted just six months, departing in June 2011, leading Tayub to resume control of the running of the business.

While Tayub is known for leading Poundstretcher, he is perhaps better known among his competitors as

co-owner of Crown Crest, a Leicester-based wholesaler.

The group, which Tayub’s brother Rashid co-owns, is reported to be worth £130m after being set up in 1976 as a humble cornershop when the family moved to the UK from Malawi.

When Tayub moved into what is believed to be his first retailing role through Poundstretcher, it intrigued his customers, who had become his rivals overnight.

The retail counterpart says: “Everyone in the discount sector knows him because he supplies them all, or used to. He’s a good wholesaler.”

With Poundstretcher’s stronger performance, it seems Tayub is beginning to prove himself a good retailer too.

Career history

2011 Poundstretcher chairman and chief executive

2008 Poundstretcher chairman, Crown Crest co-owner

2007 Tayub enters Poundstretcher, taking a 30% stake

1976 Co-founds Crown Crest