Retails in Pakistan

ASSIGNMENT PAIRS
NAME: ABBAS AFZAL
SABAH KARIM
ID#: F2018005052
F2018005111
SECTION: A
SUBMITTED TO: SIR ZEESHAN
DATE OF SUBMISSION: 04 JAN, 2022
Contents

Introduction 3

Background 3

Types of Retail in Pakistan 4

Local Trade4

Traditional Trade 4

International Modern Trade 5

Departmental stores 5

Discount Stores 5

Supermarkets 5

Warehouse Stores 5

Kiryana Stores 5

Specialty Store 5

e-Retailers 5

Conclusion 7

References 8
Introduction

Retailing may be described as the selling of goods and services to the general public, which
includes shopping for personal or family use. To be a successful entrepreneur in retailing, you
need to provide more than just products; you also need to offer services like overnight hotel
accommodations or doctor's appointments. Retailing doesn't have to take place in a physical
location like a shop. Daraz.pk, Color Studio's mall direct sales, and neighborhood DVD rentals
are just a few examples of non-store selling in Pakistan.
Background

Pakistan's rising consumerism and its impact on consumer behavior, as well as the retail
industry in the nation, which services a population of 196 million people, are constantly
changing and evolving. Several hypermarkets and supercenters have opened in cities like as
Lahore and Karachi, resulting in a dramatic change in the way these cities do business in recent
years. The retail industry is one of the most important contributors to national economic
activity. According to the Pakistan Bureau of Statistics, retail sales in Pakistan totaled $4.2
billion in 2011-12, accounting for around 18 percent of the country's GDP. In the USA, there are
more than 2 million retail establishments to be found. Mama and papa kiryana stores, "pan"
shops (little kiosks selling betel leaves and cigarettes), department stores, and medical/general
stores are all examples of fast-moving consumer goods (FMCG). Despite the fact that the
economy is growing at a slow pace, private consumption increased by an astonishing 130
percent between 2007 and 2012 (Awaisi, 2020)
Businesses aiming to develop their operations in Pakistan should reasonably expect Pakistan's
retail sector to become a significant center. With the arrival of global brands and outlets, the
retail industry in Pakistan has received a much-needed boost, driving local businesses to grow
in order to keep up with their more established foreign rivals (Ahmed, 2016).
A rise in disposable income, particularly among Pakistan's middle class, is fueling the expansion
of this sector. Retail sales in Pakistan are rising at a pace of 5.3% higher than the nation's overall
GDP, with a total market value of $42 billion. Pakistan is a developing country. This industry has
the potential to provide new jobs and investment possibilities, which might lead to the entry of
foreign brands into Pakistan. By working together with the government and business sector,
Pakistan will be well on its way to being a major player on the global stage in the years to come.
The first mover advantage, product availability, financial credit, geographical development, and
multi-format approach make Pakistan's retail industry one of the ten most promising rising
economies in the world, according to Deloitte and Planet Retail. From fiscal year 2000 to fiscal
year 2011, the percentage of women working in Pakistan's government sector has climbed from
16.3 percent to 24.4 percent, according to the Express Tribune (Ahmed, 2016).
Types of Retail in Pakistan

The retail subdivision in Pakistan can be categorized into the following:

Local Trade

Includes Agha’s, Naheed, Imtiaz, Best ways, HKB, MCC, Etc.

Traditional Trade

It includes the kiryana stores, the neighborhood stores etc. this traditional segment of trade is
the largest in Pakistan
International Modern Trade

It includes Hyperstar, Metro etc.

The following is a breakdown of local, traditional, and international trade:
Departmental stores

by offering various items to customers, all under one roof. It's feasible for clients to get just
about whatever they need at one place. Customers in department stores have access to a wide
variety of products, allowing them to meet all of their shopping needs. For example, they may
offer electronics; clothing; jewellery; toiletries; cosmetics; footwear; sportswear; toys; and CDs
and DVDs. Alternatively, they may just sell books; CDs and DVDs. Chase and ChenOne are two
examples.
Discount Stores

provide end-users a wide range of options at a lesser cost to put it simply, they have a smaller
selection and in some instances worse quality products than department shops. The likes of
Chase Up, MCC, and so on are examples.
Supermarkets

The contents of this retail store, which carries food and home products, are neatly arranged by
department. At its core, it is an upgraded version of the neighborhood grocery shops that serve
consumers at their homes and businesses. Customers may get anything from baked goods and
cereal to meat, seafood, and prescriptions as well as fresh vegetables and fruits, soft drinks,
frozen products, and canned meals and juices at the one-stop shop. Think of Imtiaz and
Naheed, Farids and Aghas, or the members of Al-as Fateh, to name just a few.
Warehouse Stores

Small amounts of high-quality merchandise may be purchased in bulk at a lower price than
would otherwise be the case in traditional retail. The merchandise in these stores is strewn on
the floor, and the atmosphere is stale and uninviting. Fifth Avenue, for example, is home to the
Levi's Factory Stores.
Kiryana Stores
It is comprised of small companies that are owned and run by local inhabitants in order to cater
to the needs of those who live in the surrounding region. Even if they do have a few items for
sale, the store is completely disorganized and unwelcoming. The quantity of land that the
corporation's owner has to deal with will affect the scale of the corporation's operations. These
stores aren't known for stocking anything special, but you can expect to find the bare
necessities such as toys, cigarettes, eggs, and bread. General stores in the neighborhood, often
known as "kiryana" stores, account for almost two-thirds of all fast-moving consumer goods
(FMCG) outlets in India. These enterprises are often owned and operated by a single individual,
either on his or her own or with the assistance of one or more members of his family. Because
of their great quantity, accessibility to clients, convenience, and long operating hours, these
"kiryana" stores account for the vast majority of FMCG sales in the country, according to the
World Bank.
Specialty Store

All of the products offered by these companies fall under a narrow range of specializations. The
goal of specialty stores is to provide high levels of customer satisfaction by offering just certain
things from a single brand. Some examples are Khaadi, Junaid Jamshed, and Out Fitters.
e-Retailers

Now, customers will be able to shop from the comfort of their own homes, whenever they
choose. It is possible for customers to acquire the things they want online and have them
delivered straight to their homes using a variety of payment methods, including cash on
delivery (COD). The ease with which this kind of purchase is accessible to customers with busy
schedules and a dislike of shopping in brick-and-mortar stores is a major selling point. Online
markets include Daraz, Kaymu, TCS Connect, OLX, and ShopDaily.
The three most relevant forms of retail in Pakistan are now the e-retail, modern departmental
stores and shopping mall, and the kiryana stores.
Over 2 million retail outlets are projected in Pakistan, with 0.8 million being traditional Kiryana
Stores, the country's biggest retail channel. In most instances, these are supermarkets where
you can purchase a variety of foods under one roof. The convenience of these old-fashioned
companies sets them distinct. They are on residential edges, where customers frequently have
special credit privileges. As part of the credit arrangement, customers may buy and pay at the
end of the month. These businesses know everything from their consumers' shopping patterns
to their family's whereabouts. It helps them connect with customers and deliver important
information, therefore enhancing the purchasing experience. Contrary to popular belief, these
stores are not going away anytime soon. e-retail or e-commerce has become Pakistan's icing on
the cake as a result of the broad availability of the internet and the rise of major e-commerce
businesses like Alibaba. While e-commerce sales are expected to continue to rise at a slower
rate, this is owing to the fact that major brands represent for a small percentage of worldwide
sales. While the Millennial generation, which puts a high value on expediency and efficiency
above all else, expects higher growth, security concerns and an overreliance on existing retail
experiences, especially for high-involvement products, throw doubt on that projection.
The departmental store infused shopping malls are the game changer in the new era. These
were modern supermarkets with self-service checkouts where consumers could assemble their
own food baskets. These stores changed the game, showing huge growth in the SEC B and A
markets. People gathered in droves to see it and have a good time. Toys, perfumes, electronics,
and even food were all accessible, making these businesses one-stop shopping destinations.
This retailing paradigm has been shaken by Carrefour and Metro entering Pakistan. Carrefour's
first shop in Lahore at the Fortress Stadium ignited a frenzy among Pakistani customers anxious
to experience the country's first organized hypermart. Because of their inexpensive costs and
in-store entertainment like child rides, they rapidly became shopping destinations. People
started shopping at Carrefour, a hypermarket, rather than the increasingly outmoded
department stores. The market took off when retail malls and massive hypermarts were
merged. Hypermarts have opened flagship stores at food court and cinema malls including
Emporium, Packages, and Dolmen Malls in Pakistan to attract football enthusiasts. Malls are
Pakistan's greatest source of entertainment and attract enormous audiences due to the air
conditioning and aesthetically pleasing experience they give. Due to this tendency, practically
every mall now has a retail giant, and sales are expected to skyrocket. Local players like Al-
Fatah, who formerly operated in their own buildings, are now opening outlets in malls like
Lahore's GoldCrest Mall. Due to this, the conflict between national and international merchants
is likely to escalate and reach cities in the second and third tiers of the US population, where
numerous shopping malls are now being built (Khawaja, 2021).
Conclusion

As a consequence of new trends and innovations, current retail structures will see a boom and
a flurry of activity. However, these changes will also offer up new development opportunities
for the Pakistani retail industry, driving it to new heights of success.
References

Ahmed, S. (2016, february 27). Retail in Pakistan – An Overview. Retrieved from Linkedin:
https://www.linkedin.com/pulse/retail-pakistan-overview-sohail-ahmed
Awaisi, M. M. (2020, april 22). Retail channels in Pakistan — changing trends and future
outlook. Retrieved from Daily Times: https://dailytimes.com.pk/600117/retail-channels-in-
pakistan-changing-trends-and-future-outlook/
Khawaja, H. A. (2021, May 22). What are the problems faced by the retail sector in Pakistan.
Retrieved from Macro Pakistani:
https://macropakistani.com/retail-sector-in-pakistan/#:~:text=The%20retail%20sector%20in
%20Pakistan%20has%20been%20amongst%20the%20fastest,15%25%20of%20the%20labor
%20force.