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Grocery Retail of Pakistan
Retail
* Syed Qamar
* Umer Fariq
* Saad Afridi
* Sarah Khan
* Mohd. Bilal Khan
* Sohaib bin Shahid

Retail Industry of Pakistan
An Analysis of Grocery Retail landscape of Pakistan

2012
MIP
Institute of Business Administration
5/25/2012

* Syed Qamar
* Umer Fariq
* Saad Afridi
* Sarah Khan
* Mohd. Bilal Khan
* Sohaib bin Shahid

Table of Contents

Snapshot of Pakistan’s Economy3
Snapshot of Retail Landscape of Pakistan4
Pakistan Food Retail Sector7
Organized Retail and Imports9
Consumer Demographics11
Consumer Food Purchasing Behavior12
SURVEY OF VARIOUS TYPES OF STORES15
Category C Stores15
Category B Stores18
International Modern Trades21
METRO Cash ‘n’ Carry (MCC)21
Local Modern Trades23
Imtiaz Super Store23
Chase UP24
Naheeds Super Store24
CONCLUSION26
SOURCES27

Snapshot of Pakistan’s Economy
* Pakistan's consumer goods and retail industry is underdeveloped, but it is expanding rapidly. The retail potential of Pakistan is expected to be $42 billion.

* Total consumer expenditure grew by an estimated 4.6% year on year, reaching PKR 12tr in 2013 (est.) from PKR 10.4tr in 2012.

* The current GDP of Pakistan amounts to PKR 18 tr, with per head contribution to GDP of Rs. 94,250 which is growing at 2% per annum

* Total disposable income has grown by 69%, to stand at an estimated at PKR 8000tr in 2012.

* The current population of Pakistan is 180 m with rural to urban population split of 65:35. * Approximately 120 m people in residing in rural areas and 60 m in urban centers.

* Pakistan’s population is forecast to grow at a rapid average year-on-year rate of 2.2% in the forecast period, reaching 202.3 m in 2014.

* The biggest and the growing portion of the population comprises of the consumer middle income class estimated at about 25 % of the total population.

* The median household income is Rs. 2.5 lacs, with per head household consumption of Rs. 77,400 annually cumulating to be PKR 15 tr in total household expenditure.

* There are almost 25 m households in Pakistan with an average of 7 people per house.

* Just four sectors—oil and gas, telecommunications, financial services and transport accounted for 64% of foreign direct investment in Pakistan in 2009/10. Snapshot of Retail Landscape of Pakistan

* The overall food retail and wholesale business accounts for approx 17% of Pakistan’s GDP at Rs. 963,368 million (Pakistan Economic Survey 2009/10).

* The forecasted retail sales of Pakistan for 2012 are $120bn or PKR 10.4 trillion, which are expected to grow at the rate of 16%.

* In 2012 retail sales are forecast to expand by 8.5% in volume terms.

* 67% of total retail sales comprises of food retail. It is approximately PKR 7.4 trillion

* 33% of total retail sales comprises of non-food retail. It is approximately PKR 3.4 trillion.

* There are over 125,000 retail outlets in the country. Some 30,000 stores serve about 55 per cent of the population.

* Karachi alone accounts for 40 per cent of consumer business.

* The ongoing shift in the population from rural to urban areas will underpin the continued expansion of the retail sector in 2011-15.

* A gradual shift towards more formal retail facilities will facilitate the expansion of sales in the forecast period, but this process will be slow and confined to urban areas.

* The retail sector is highly fragmented and will remain dominated by independent neighborhood shops. The vast majority of retailers in Pakistan are small family-run shops comprise about 95% of all food retail stores in Pakistan.

* While the modern retail sector (hypermarkets, supermarkets, discount stores, etc.) make up the remaining 5% of all Pakistani retail outlet.

* Supermarket chains are still in their infancy in Pakistan, and the few supermarkets in...
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