Monthly Archives: May 2010

The retail industry continued in Pakistan in the form of Kiranas till 1980s. Soon, following the modernization of the retail sector in Pakistan, many companies started pouring in the retail industry like Macro, Metro etc. As has been mentioned earlier the retail sector in Pakistan can be widely split into the organized and the unorganized sector.The following are some types of retail formats;

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.

LARGE RETAILERS/ WHOLESALE RETAIL STORES

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.

STREET VENDORS/VENDING MACHINES

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, vendor’s 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

These 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.

MAIL ORDER SELLING

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

Initially, utility stores were opened to provide goods on subsidized prices to government servants only. However, later to ensure regular provision of essential commodities to general public at reasonable prices, the doors of utilities stores were opened for commoners too. Utilities stores stock and sell daily use items at lower prices compared to general market. The utility stores corporation of Pakistan, a government controlled autonomous body is a limited company and has several hundred branches all over the country. As per reported figures, the corporation by now has a chain of about 1000 stores, which are located in all major cities and towns.

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.

JUMMA/MANGAL/ITWAR BAZAARS

The institution of these Bazaars can be described as a step towards “consumerism” in Pakistan. In these Bazaars all daily use items are available. These can be termed; as discount houses since as per claims, the commodities are available at much cheaper rates. The middleman and his share has been eliminated and the producers directly sell goods to the end- users. The normal complaint about these Bazaars is that sub-standard goods are sold at comparatively cheap rates. However, this fact can not be denied that except for nominal official rent and license fee to be paid to Government, no other overheads are to be borne by the sellers and hence sellers at these Bazaars remain cheaper as compared to stores housed in big buildings and malls.