Professional Documents
Culture Documents
a. They collect an assortment of products and services from a vide variety of suppliers
and offer them for sale.
c. They frequently store merchandise, mark prices on it and pay for items prior to,
selling them to final consumers.
The dynamic nature of retailing has never been demonstrated, experienced and seen
better than now. Changes in environments — Economic, Political/Legal, Socio-cultural,
Technological, Ethical and Competitive — within which retailers of all kinds must
operate, force adjustments in policies, methods and managerial strategies.
The retailer has to be very familiar with the environmental factors. Also, he has to
remain watchful of the continuous change taking place in the environments since the
change in these factors has and will always have vital impact on survival, growth, profit
making and ultimate success of the business. Therefore, as far as possible, all plans,
objectives, strategies, policies have to be formulated and implemented, catering for and
considering the changing environments.
Retail Management
a. ECONOMIC:
2) Economic Stability
3) Market Size
6) Distribution of Income
7) Inflation
b. POLITICAL/ LEGAL:
1) Political Stability
2) Political Organization
3) Relevant Legal Rules: Quality, efficiency and effectiveness of the legal structure in
terms of general business law, labour law, tax law, laws relevant to business and
General Law & Order.
c. SOCIOLOGICAL- CULTURAL:
3) Class structure
Retail Management
5) Suburban living
6) Culture
1) Industrialisation
2) Literacy level
3) Attitude of people
5) Scientific Discoveries
e. COMPETITIVE:
2) Strength of competitors
3) Size of Competitors
f. ETHICAL:
RETAILING IN PAKISTAN
Retailing in Pakistan, and for that matter in most of the Third World Countries, has
traditionally been a small scale business, meant mainly for small and less or not
educated entrepreneurs. Till late sixties, large scale retailing institutions like Super
Markets, Departmental Stores, Discount Houses were unheard of in Pakistan.
However, utility Store and canteen stores Department, a type of mini super markets, are
functioning since the time of independence: but these stores were mutual benefit stores
for service of government servants and Defense Services personnel respectively. In late
sixties, in Lahore, a super market chain with the name of COOP stores was introduced.
The CSD still remains a mutual benefit store but utility stores have been opened to
general public. The chain of COOP store of Lahore was later taken over by Utility
Stores Corporation of Pakistan.
In the rural areas of Pakistan, the retailing still follows the same traditional "HUTTI'
system — small shops which provide very necessary daily use items to the villagers
from available stores. These days almost all grocery items, cosmetics, vegetable ghee,
and other essential items including shelf medicines are available on HUTTIES, but back
in fifties rather till late in sixties very few items could be procured from these
HUTTIES.
In the urban areas of Pakistan, almost all types of related outlets exist. The introduction
of sector wise planned markets in the newly planned modern city of Islamabad the
capital, gave new dimensions to modern retailing in Pakistan. Thereafter almost in all
other cities and new towns of Pakistan, where a new residential locality had to be
developed, special emphasis was given to plan retail markets in a proper way. The main
retail urban outlets are:
a. Small retailers
c. Department stores
d. Super markets
e. Street vendors
f. Vending machines
h. Utility stores
Retail Management
i. Cooperative stores
k. Specialty stores
SMALL RETAILERS:
These are very similar to HUTTIES found in the rural areas of the country. Normally
these types of stores are located in suburbs of the cities and towns and take care of the
demands and requirements of the people living in that area.
These are few in numbers as compared to small retail stores. These are the types of
stores which, in Karachi, were originally found in the areas of Jodia Bazaar and Joona
Market only. Almost all the retailers in the city use to collect supplies from them till
mid seventies. However, with the development of the city, such like stores were opened
in the areas of Liaqatabad (Lalukhet), Nazimabad, Landhi, Malir Colony, Shah Faisal
Colony, New Karachi, North Karachi, Korangi, Orangi, Federal B area (Water Pump)
and North Nazimabad.
DEPARTMENT STORES:
A department store is a large retailer employing about 25 or more people and usually
selling a general line of apparel for the family, household linens and dry goods and
furniture, home furnishings appliances, radios, and televisions. It is organized into
separate departments for purpose of buying, promotion, service and control.
In Pakistan, we do have department stores, but these stores do not qualify for discussion
under large scale retailing. The people who manage these stores are generally the
owners or family members of the owners who are guided solely by their gut-feeling.
Most of them did not have the exposure to any professional training or any kind of
higher education. With the passage of time, however, more and more educated persons
are now entering into the retailing business.
SUPER MARKETS:
A supermarket is a departmentalized food store. Pakistan entered the super market era
at a time when some western European countries were moving from super market to
'Hypermarche'. The first supermarket in Pakistan was opened at Karachi in 1968.
During last 27 years quite a few of them have sprung up, but most of these are more like
"superettes" or mini super markets rather than full fledged supermarkets with intensive
and extensive product mix. Even food items like meat, fresh fruits, are not available
with most of them.
Retail Management
Door to door selling is a very common sight in Pakistan. The provision of products and
services through street vendors range from milk, bakery items, fish, vegetables, fruits,
textiles, garments, crockery, linen, CHATNIS & ACHARS and other special home made
eatables to barber, gardening, house-making & cleaning and tailoring services.
The seller has to carry the merchandise. At times, vendors book orders by showing
samples but that is very rare. Normally credit facilities are not extended by door to door
sellers; yet at times depending on relations, credit is provided by the sellers for a period
extending upto one week or so. The milkman and the newspaper suppliers and at times
even the vegetable vendors submit bills at the end of the month; so in some cases a
month's credit is extended to customers.
VENDING MACHINES were seen at airports and Railway stations sometimes back in
80s. Even now, in cities like Islamabad, Karachi and Lahore vending machines are
operative. These machines are usually attended by a salesperson, thus the element of self
service is not there. However, now telephone booths which can be operated through
coded cards are operative in almost all the major cities of Pakistan.
This mode is popular in books and periodicals but seldom used for sale/ purchase of any
other merchandise. Lack of knowledge interest and integrity on the part of sellers and
lack of efficient postal system appears to be the two main causes for poor mail order
business. Lack of information of consumers and high cost of producing illustrated
catalogs could be another factor for restricted use of this method of retailing.
UTILITY STORES
COOPERATIVE STORES
PIA coop store and a few other established in the country are the example. The COOP
established in 60s in Lahore has been taken over by utility stores corporation. Due to
vested interest of the members and lack of training, knowledge and education of the
store operators these kinds of stores have not been successful in Pakistan.
Retail Management
JUMMA/MANGAL/ITWAR BAZAARS:
For thousands of years most goods were sold in market places or by peddling. In
Pakistan, India, tropical Africa and most of the developing countries including south
and Latin America, hawkers still walk the streets of cities and towns carrying their
wares, or cycle/ motor cycle from street to street or village to village. Even, in most
developed countries peddlers are still seen selling goods.
It is a normal sight in Pakistani cities, towns and villages that either on bicycles,
tricycles, or on animal driven carts, vendors sell all kinds of daily consumer goods and
services, The commodities range from cloth to cosmetics and milk to meat.
Hairdressers, knife & scissors repairers and sharpeners are normally seen on bicycles. In
Karachi, Milkmen have switched to bicycle from walking & from bicycle to motorcycle.
Even some are using motor carriers these days. Yet, still the market places remain the
chief form of retail selling.
Chain of retail stores is known to have been operative in China several centuries before
Christ. The chain store, as it is known in much of the world today, however, is generally
believed to stem from the founding of Great Atlantic and Pacific Tea Company (A&P) in
New York City in 1859.
The prototype of present day departmental stores existed in Japan as early as the 17th
century. The horse-drawn buses encouraged the growth of central business districts and
allowed department store to take hold in the western world. "Au Bon March" in Paris
developed from a large specialty-store to a department store in about 1860.
The pattern of SUPER MARKET development was set in the United States in 1930,
when Michael Cullin opened the first unit of what was to become the King Kullen Chain
of Super Markets. CONSUMER COOPERATIVES are retail stores owned and
operated by consumers for their mutual benefit. Most COOPERATIVES adopt the
principles of the first cooperative store established in Rochelle, England in 1954.
The three principal types of NON-STORE RETAILERS are catalog houses, itinerant
(roving) retailers and vending machines operators. The largest catalog houses in the
world, Sears, Roebuck & company and Montgomery Ward & company were founded in
the United States during the latter part of the 19th century. Following World War II,
mail order specialists grew rapidly in highly industrialized countries.
Many types of retail outlets each fulfilling a particular purpose in the distributive
process can be identified. The retailer reaches the customer in one or more of following
four ways:
a. Through stores
c. Through mail
It is the type and range of merchandise, which determine the form of organization of
retail stores. The distinctions are as under:
To do a good job, i.e. entire satisfaction of customers and running a profitable business,
the retailer must perform many important functions. Some of the functions are:
Retail Management
j. Handling complaints