Professional Documents
Culture Documents
Submitted to
Mem-Saba Zehra
Submitted by
Syed Tufail Haider (1204177)
Abdul Latif (1204101)
Muhammad Waseem (1204136)
Muhammad Waheed (1204132)
0|Page
ACKNOWLEDGEMENT
On behalf of my whole group,
I start with the name of Almighty ALLAH for giving me strength, potential and
strong points to complete this entire significance research in a relevant manner.
I would like to think the people who have made this work possible. My prime
appreciation goes to my supervisor Mem-Saba Zehra, the encouragement,
motivation and support she provided with her knowledge on the subject. She had
constantly challenged us to think about the research in new ways, and had
consistently supported us in our research endeavors. Through her guidance, we
have gained invaluable experience. We could not have had better advisor then
her.
Moreover, We would especially thankful to all the respondents, who co-operated
with us and in filling out the questionnaire.
Finally, we would like to thank our parents. They have always encouraged us
through all our endeavors. Their support and advices has given us the motivation
to achieve our goals.
1|Page
TABLE OF CONTENTS
S.NO.
DESCRIPTION
PAGE NO.
ACKNOWLEDGEMENTS..
2
3
4
5
TABLE OF CONTENT....
EXECUTIVE SUMMARY.........
ABSTRACT
INTRODUCTION.................................
2
3
4
5
LITERATURE REVIEW............
6-7
RESEARCH METHODOLOGY..
8-9
Research Question
Research Objective
Hypothesis
Future Implications of the S tudy
8
9
DATA ANALYSIS.......
INTERVIEW QUESTIONS.
10-29
03-31
10
INTERPRETATIONS OF RESULTS
11
CONCLUSION ..
SUGGESTIONS & RECOMMENDATIONS.
34
LIMITATION.
REFERENCES
BIBLIOGRAPHY ..
36
37
12
13
14
15
32-33
35
38-41
2|Page
EXECUTIVE SUMMARY
The retail sector is expanding and modernizing rapidly in line with Pakistans
economic growth. Retailing is defined as all the activities involved in selling
goods or services directly to final consumers for personal, non business use.
Retailing consists of the sale of goods or merchandise. It is divided into two
sectors organized retailing (which also known as modern trade retailing) and
unorganized retailing (also known as traditional retailing).
Organized retailing is a new concept in Pakistan. Since last few years a rapid
growth has been observed in Pakistans retailing. Organized Retail Stores are the
market leader in the field of Retailing.
This study analyzes the factors which influence the consumers to move towards
organized retailing from unorganized retailing. The study also helps
the retailers by revealing the facts regarding the most prioritized attributes of the
retail stores which attract the consumers towards them. This survey also revealed
the future of organized and unorganized retailing in Pakistan and the impact of
organized retail outlets on unorganized retail outlets.
After the analysis it was observed that customers are very much anxious towards
organized retailing and they expect variety along with quality as a primary
attribute from retailers.
The study also revealed that lower income group are still not attracting towards
organized retailing due to inconvenient location, higher prices, unavailability of
small quantity, unavailability of credit facility.
However the study concluded that both the concept organized and unorganized
retailing will grow in future and will not replace each other and there will be no
such impact of departmental stores on general stores.
3|Page
ABSTRACT
The retail industry in Pakistan is emerging as one of the largest industry. In last
few years we have observed that modern and organized retailing concept is
booming in Pakistan.
This research was undertaken to analyze shifting preferences of consumer
towards organized retailing from unorganized. We also analyze factors which
influence them to select the retailing format. For purpose we took responses
through random sampling from 300 respondent using questionnaires in Karachi.
We tried to get an adequate ratio of middle age men and women as they
influence the most in selecting the retailing format. We also conducted interview
from owners of organized and unorganized retail outlets in order to find out the
impact of these departmental /general stores on their sales volume. These
interviews were recorded as well.
4|Page
INTRODUCTION
Retailing is the final step in the distribution of merchandise i.e. the last link in the
supply chain. It connects the bulk producers of commodities to the final
consumer. Retailing covers diverse products such as food, apparels, consumer
goods etc.
The retail industry in Pakistan is emerging as one of the largest industries. Retail
industry is divided into unorganized and organized sectors. In Pakistan,
unorganized retailing has been predominantly in the form of local general stores
also called Kiryana shops which sell multiple brand grocery items of daily use.
Such outlets are generally owned by a single individual and managed by him
alone or with some help of one or two workers. Most of the general stores rely on
counter sales only. On the other hand organized retailing refers to licensed
retailers who are registered for sales tax, income tax etc. like, Hyperstar, Metro,
Chase-up and so on. The retail sector is expanding and modernizing rapidly.
Organized retailing is booming and creating huge opportunity for enterprises in
Pakistan. Ever increasing number of hypermarkets, departmental stores and
shopping malls are inviting potential investors to invest in Pakistan. After looking
at the dynamics of retailing in Pakistan, one confronts an obvious question that
how retailing in Pakistan is going to be shaped in coming years. This necessitates
study of the factors which influence the consumers to move towards the
organized retailing from unorganized retailing and impact of these departmental
stores on the sales volume of general stores.
This research project is undertaken with a view to analyze shifting preferences of
consumers towards organized retailing over unorganized retailing and vice-versa
and also role of income level of consumers in the selection of retail formats.
5|Page
LITERATURE REVIEW
Ghosh and Tripathi (2010), attempted to analyze purchase pattern of
customers towards organized retail outlets in terms of merchandise
categories purchased, time spent within the store, number of merchandise
purchased on each visit, stores switching behavior and store attribute. The
results of the study depicted that the younger generation has greater
tendency to visit organized retail outlets. The shoppers which remained within
a store for at least two hours considered shopping to be a stress releaser and
fun activity. The commonly purchased items from a retail outlet are garments
followed by groceries, lifestyle products and household appliances. The study
further reveals that customers in tier 2 and tier 3 cities evaluate a store on
convenience and merchandise mix, store atmosphere and services.
7|Page
METHODOLGY
This research is based on primary data as well as secondary data. The primary
data was collected from consumers and owners through questionnaire and
structured interviews across different departmental stores namely Farid, Imtiaz,
chaseup & Naheed superstore and unorganized retail outlets (Kiryana shops) in
Karachi. The stores and shops were chosen from different parts of city to enable
a wider spread of samples. Most of the respondents were approached outside the
billing counter of departmental stores after they had finished shopping, before
leaving stores and at the counter of kiryana shops and rest of the respondents
were approached at their houses. The respondents were given multiple choice
questionnaire to respond their views about changing shopping preferences.
Interviews were conducted from owners of organized and unorganized retail
outlets (these interviews were recorded as well). The secondary data was drawn
from various articles, journals and internet.
The aim was to collect 320 samples for the analysis (300 consumers of both
organized and unorganized retail outlets, 15 owners of general stores and 5
owners of departmental stores). Respondents were selected randomly
throughout the city. We tried to get an adequate ration of men and women. The
main demographics target was the middle age men and women as in Pakistan
they influence the most in selecting the retail format for shopping. Buyers who
have been visiting Department Stores were better able to answer the questions
regarding the influencing factors and the reasons for their consumption and
purchase. After the collection of data, analysis was carried out using statistical
tool.
Primary Data Source
Tool
Questionnaire
Questionnaire
Interview
Interview
8|Page
RESEARCH QUESTION
What are the impacts of shifting consumer preferences towards organized
retailing from unorganized retailing?
RESEARCH OBJECTIVE
To analyze shifting preferences of consumers towards organized retailing over
unorganized retailing.
HYPOTHESIS
Dependent Variable:
Sales volume of Departmental and General Stores.
Independent Variables:
Consumer preferences.
Income of consumers.
9|Page
DATA ANALYSIS
Q1: Have you ever visited departmental stores?
Frequency
Valid
Percent
Valid Percent
Yes
280
92.1
93.3
No
20
6.6
6.7
300
98.7
Total
100.0
In question 1 we have asked that whether the respondent have visited the store
ever. As per analysis it was revealed that 280 respondents out of 300 have visited
the departmental stores and 20 respondents have not visited any departmental
stores ever. The results are summarized in the table below.
Valid
Missing
Total
Percent
Valid Percent
32
10.5
11.5
58
19.1
20.8
Childrens Demand
17
5.6
6.1
172
56.6
61.6
Total
279
91.8
100.0
21
8.2
300
100.0
System
There are significant amount of people who visit the departmental store to
purchase general products. Here we have observed that childrens demand has
the least influence to visit departmental stores because only 17 respondents visit
departmental store due to childrens demand.
10 | P a g e
Q3: From where you were shopping before buying from these
departmental stores?
Frequency
Valid
Neighborhood
Valid Percent
121
39.8
43.4
85
28.0
30.5
50
16.4
17.9
any other
23
7.6
8.2
279
91.8
100.0
21
8.2
300
100.0
Total
Missing
Percent
System
Total
Graphical Representation
60
50
Percent
40
30
20
10
0
Leisure Time
Activity
Purchase of
Special
Products
Childrens
Demand
Purchase of
General
Products
Un respond
11 | P a g e
Total
Valid Percent
117
38.5
39.8
3-5 km
43
14.1
14.6
1-3 km
87
28.6
29.6
47
15.5
16.0
294
96.7
100.0
3.3
300
100.0
Total
Missing
Percent
System
It has been observed that people always prefer to buy their daily need goods
from the nearest store which is less than 1 km and 87 respondents can travel 1-3
km. It was revealed that a very few number of respondents can travel more than
5 km for grocery.
12 | P a g e
Valid
Valid Percent
Daily
126
41.9
42.7
weekly
153
50.8
51.9
fortnightly
2.0
2.0
monthly
2.7
2.7
.7
.7
295
98.0
100.0
2.0
300
100.0
Total
Missing
Percent
System
Total
It has been observed that mostly people prefer to buy fruits and vegetables
weekly and daily as they are perishable goods and they are too difficult to store
without refrigerator and most of the surveyed people come under monthly
income slab of 5,000-20,000.
Valid
29
9.6
9.7
weekly
87
28.9
29.1
fortnightly
29
9.6
9.7
142
47.2
47.5
12
4.0
4.0
299
99.3
100.0
0.7
300
100.0
Total
Valid Percent
daily
monthly
Missing
Percent
System
Mostly people purchase grocery for whole month because they are not
perishable goods as fruits and vegetables so people prefer to purchase grocery
monthly.
13 | P a g e
Valid
daily
Valid Percent
79
26.2
27.0
111
36.9
37.9
fortnightly
29
9.6
9.9
monthly
42
14.0
14.3
32
10.6
10.9
293
97.3
100.0
2.7
300
100.0
weekly
Total
Missing
Percent
System
Total
Valid
Total
Valid Percent
daily
46
15.3
16.5
weekly
67
22.3
24.1
fortnightly
24
8.0
8.6
monthly
74
24.6
26.6
67
22.3
24.1
278
92.4
100.0
22
7.6
300
100.0
Total
Missing
Percent
System
When we talk about ready to eat/cook food around 25% purchase these on a
monthly basis while 22% buy ready to eat/cook food on more than a month basis
which means that people dont consume these frequently.
14 | P a g e
Valid
organized
Valid Percent
56
18.6
18.7
243
80.7
81.0
.3
.3
Total
300
99.7
100.0
System
Unorganized
4
Missing
Percent
Total
300
100.0
Valid
176
58.5
58.9
Unorganized
122
40.5
40.8
.3
.3
299
99.3
100.0
.7
Total
Total
Valid Percent
organized
Missing
Percent
System
300
100.0
It has been observed that around 59% respondents purchase grocery from
organized retail outlets which shows that mostly people prefer organized retail
outlets for grocery.
15 | P a g e
Frequency
Valid
Missing
Percent
Valid Percent
organized
177
58.8
60.0
Unorganized
118
39.2
40.0
Total
295
98.0
100.0
2.0
300
100.0
System
Total
When we talk about beverages and snacks it has been observed that sufficient
amount of respondents prefer to purchase these from organized retail outlets.
Valid
organized
Unorganized
4
Total
Missing
Total
System
Percent
Valid Percent
211
70.1
75.4
68
22.6
24.3
.3
.4
280
93.0
100.0
20
7.0
300
100.0
Again a huge number of respondents prefer to buy ready to eat/cook food from
organized retail outlets rather than from unorganized retail outlets.
16 | P a g e
Q7: How many times do you visit the departmental store in a month?
Frequency
Valid
once
Valid Percent
150
49.8
52.3
3-5
25
8.3
8.7
2-3
97
32.2
33.8
15
5.0
5.2
287
95.3
100.0
13
4.7
300
100.0
Total
Missing
Percent
System
Total
Frequency
Valid
Total
Valid Percent
159
52.8
55.6
24
8.0
8.4
35
11.6
12.2
whenever Required
68
22.6
23.8
286
95.0
100.0
14
5.0
300
100.0
Total
Missing
Percent
System
As per analyses more than 52% purchase first week of the month because usually
service class get their salary in the first week of the month and a very few number
of respondents purchase at the end of the month.
17 | P a g e
Valid
Increased
Valid Percent
155
51.5
54.2
Remain Same
96
31.9
33.6
Decreased
35
11.6
12.2
286
95.0
100.0
14
5.0
300
100.0
Total
Missing
Percent
System
Total
In this question the respondents were asked about their monthly expenditures.
As per analyses 51.5% respondents replied that by shopping at departmental
stores their expenditures increased, 32% replied that their expenditures remain
same and only 12% replied that their expenditures decreased.
Graphical Representation
60
50
40
30
20
10
0
Percent
Increased
Remain Same
Decreased
Un Respond
51.5
31.9
11.6
18 | P a g e
Q10: In future will you spend at organized retail outlets (Departmental Stores)?
Frequency
Valid
definitely yes
Valid Percent
145
48.2
49.5
43
14.3
14.7
definitely not
2.3
2.4
probably yes
94
31.2
32.1
probably not
1.3
1.4
293
97.3
100.0
2.7
300
100.0
can't say
Total
Missing
Percent
System
Total
This question was asked from the respondents to find out that in future will they
spend at departmental stores. In this 48.2% of the respondents told that they will
definitely spend more at organized retail outlets in future, 14% of them were not
sure about it and only 2.3% of them replied that they will definitely not spend at
organized retail outlets.
Graphical Representation
60
50
40
30
20
10
0
Percent
definitely
yes
can't say
definitely
not
probably
yes
probably
not
Un
Respond
48.2
14.3
2.3
31.2
1.3
2.7
19 | P a g e
Q11: Do you find that pricing of departmental stores is less than general stores?
Frequency
Valid
yes
Valid Percent
128
42.5
43.8
equal
47
15.6
16.1
no
56
18.6
19.2
may be
61
20.3
20.9
292
97.0
100.0
3.0
300
100.0
Total
Missing
Percent
System
Total
After analyses it was observed that 42.5% respondent think that prices at
organized retail outlets are less than general stores and only 18% think that prices
at organized retail outlets are not less than general stores.
Graphical Representation
45
40
35
30
25
20
15
10
5
0
Percent
yes
equal
no
may be
Un Respond
42.5
15.6
18.6
20.3
20 | P a g e
Q12: Do you think the sales volume of unorganized retail outlets (general stores) will?
Frequency
Valid
definitely Increase
Valid Percent
49
16.3
16.7
109
36.2
37.1
Decrease
66
21.9
22.4
Increase
34
11.3
11.6
definitely Decrease
36
12.0
12.2
294
97.7
100.0
2.3
300
100.0
Remain Same
Total
Missing
Percent
System
Total
This question was asked from the respondents in order to check their perception
about unorganized retail outlets in the city. They were asked that what they think
about the sales volume of unorganized retail outlets in the city will it decrease,
increase or remain same. In this question we have analyze that a large number of
respondents think that the sales volume of unorganized retail outlets (general
stores) will remain same and around 22% think that sales volume will decrease.
Exact percentage is given in the above table.
Graphical Representation
40
35
30
25
20
15
10
5
0
Percent
definitely
Increase
Remain
Same
Decrease
Increase
definitely
Decrease
Un
Respond
16.3
36.2
21.9
11.3
12
2.3
21 | P a g e
Q13: According to you, what are important factors for you when you go for shopping?
RANK
1
Total
51
20
25
35
54
185
27.6
10.8
13.5
18.9
29.2
100.0
Variety
13
23
23
47
59
165
(Percentage)
7.8
13.9
13.9
28.3
35.5
100.0
Customer service
48
48
37
21
36
190
25.3
25.3
19.5
11.1
18.9
100.0
57
46
41
27
18
189
(Percentage)
30.2
24.3
21.7
14.3
9.5
100.0
122
27
33
16
21
219
(Percentage)
55.7
12.3
15.1
7.3
9.6
100.0
Factors
Location
(Percentage)
(Percentage)
Quality
15% of people prefer pricing and discounts as their third priority because
people are price conscious.
29.2 people consider location as their fifth priority which shows that they can
travel far and wide but they will not compromise on quality.
22 | P a g e
Q14: What are your reasons for shopping from departmental stores? (Rank 1-6)
RANK
Factors
Total
Better Quality
(Percentage)
Good Environment
(Percentage)
Display of Products
(Percentage)
Wide Range
(Percentage)
Time Saving
(Percentage)
Reasonable Pricing
(Percentage)
87
31
22
25
14
11
190
45.8
16.3
11.6
13.2
7.4
5.8
100.0
53
38
31
24
20
11
177
29.9
21.5
17.5
13.6
11.3
6.2
100.0
14
17
21
34
27
36
149
9.4
11.4
14.1
22.8
18.1
24.2
100.0
55
18
18
28
24
26
169
32.5
10.7
10.7
16.6
14.2
15.4
100.0
46
30
24
11
25
35
171
26.9
17.5
14.0
6.4
14.6
20.5
100.0
28
12
27
17
27
51
162
17.3
7.4
16.7
10.5
16.7
31.5
100.0
When respondents were asked to specify the reasons which influence them to
purchase from these organized retail outlets, then 33% of the respondents told
that they purchase due to better quality provided by these stores, 16 % told that
second reason is good environment, 12% replied that reasonable pricing is the
third 17% told that display of product is at fourth reason then time saving and
lastly wide range.
Graphical Representation
1 Better Quality
15.4%
45.8%
14.6%
2 Good Environment
3 Reasonable Pricing
22.8%
4 Display of Products
16.7%
21.5%
5 Time Saving
6 Wide Range
23 | P a g e
Q15: What are your reasons for shopping from General stores? (Rank 1-6)
RANK
Factors
convenient Location
(Percentage)
Home Delivery Service
(Percentage)
Easy Replacement
(Percentage)
Credit Facility
(Percentage)
small Quantity
(Percentage)
Bargaining Facility
(Percentage)
Total
126
20
18
13
12
17
206
61.2
9.7
8.7
6.3
5.8
8.3
100.0
21
13
19
23
37
44
157
13.4
8.3
12.1
14.6
23.6
28.0
100.0
35
22
33
34
18
24
166
21.1
13.3
19.9
20.5
10.8
14.5
100.0
39
37
16
15
21
46
174
22.4
21.3
9.2
8.6
12.1
26.4
100.0
52
28
31
26
14
19
170
30.6
16.5
18.2
15.3
8.2
11.2
100.0
24
24
23
23
30
28
152
15.8
15.8
15.1
15.1
19.7
17.9
100.0
In this question respondents were asked to rank the reasons for shopping from
general stores. The analyses shows that 61.2% respondents ranked convenient
location as the first reason for shopping from general stores, credit facility on
second, third reason is easy replacement, availability of small quantity Is at
fourth, then home delivery service and bargaining facility. Exact figures are
shown in table and graph as well.
Graphical Representation
1 convenient Location
2 Credit Facility
17.9%
61.2%
23.6%
15.3%
3 Easy Replacment
4 small Quantity
19.9%
21.3%
24 | P a g e
Q16: How do you find employees attitude in the departmental stores as compare to general stores?
Frequency
Valid
Percent
Valid Percent
cooperative
169
56.1
59.1
satisfactory
58
19.3
20.3
1.7
1.7
54
17.9
18.9
286
95.0
100.0
14
5.0
300
100.0
rude
they only help when they are
asked
Total
Missing
System
Total
25 | P a g e
Q17: What are the problems you face when you shop from departmental
stores? (Rank 1-6)
RANK
Factors
Total
Inconvenient Location
(Percentage)
No Home Delivery Service
(Percentage)
63
29
19
15
23
22
171
36.8
17.0
11.1
8.8
13.5
12.9
100.0
60
25
30
24
19
17
175
34.3
14.3
17.1
13.7
10.9
9.7
100.0
14
12
19
31
38
24
138
10.1
8.7
13.8
22.5
27.5
17.4
100.0
115
29
24
15
200
57.5
14.5
12.0
4.5
4.0
7.5
100.0
18
30
29
28
14
28
147
12.2
20.4
19.7
19.0
9.5
19.0
100.0
11
10
13
18
21
61
134
8.2
7.5
9.7
13.4
15.7
45.5
100.0
In this question we have asked to rank the problems consumers face when
shopping from departmental stores. As per results, 57.5% of respondents replied
that long queue for billing is the biggest problem when they shop from
departmental stores then improper space management is the second key
problem when they shop from these departmental stores. Further analyses I
shown in table and graph as well.
Graphical Representation
1 Long Queuing for billing
2 Improper Space Management
45.5%
57.5%
13%
22.5%
20.4%
17.1%
5 Inconvenient Location
6 Non-cooperative attitude of
staff
26 | P a g e
Q18: What are the problems you face when you shop from general
stores?
RANK
Factors
Unhygienic Condition of Stores
(Percentage)
Improper shelf space
(Percentage)
Total
91
26
25
18
20
187
48.7
13.9
13.4
9.6
3.7
10.7
100.0
42
27
36
23
18
12
158
26.6
17.1
22.8
14.6
11.4
7.6
100.0
32
13
15
24
30
36
150
21.3
8.7
10.0
16.0
20.0
24.0
100.0
63
25
14
21`
15
35
173
36.4
14.5
8.1
12.1
8.7
20.2
100.0
42
30
29
25
18
18
162
25.9
18.5
17.9
15.4
11.1
11.1
100.0
11
12
37
59
136
8.1
6.6
5.9
8.8
27.2
43.4
100.0
In this question respondents were asked to rank the problems they face when the
shop from unorganized retail outlets (general stores). After the analyses it was
observed that around 49% replied that the unhygienic conditions of the stores
are the core problem. Mostly general stores owners do not focus on hygiene and
cleanliness. Then the poor display of product is ranked second by the 18.5%
respondents. Improper parking facility is ranked on number six by most of the
respondents which shows that this is the least problem they face.
Graphical Representation
1 Unhygienic Condition of Stores
20.2%
27.2%
3 Home
Delivery
Service
3 Improper
shelf
space
16%
18.5%
22.8%
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Total
Valid Percent
Percent
1.0
1.2
1.2
12
4.0
5.0
6.2
15
5.0
6.2
12.4
26
8.6
10.8
23.2
38
12.6
15.8
39.0
53
17.6
22.0
61.0
28
9.3
11.6
72.6
36
12.0
14.9
87.6
13
4.3
5.4
92.9
10
3.0
3.7
96.7
11
1.0
1.2
97.9
12
.3
.4
98.3
14
.3
.4
98.8
18
.3
.4
99.2
20
.7
.8
100.0
241
80.1
100.0
59
19.9
300
100.0
Total
Missing
Percent
System
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Total
Valid Percent
Percent
5000-20000
95
31.6
42.6
42.6
20000-35000
58
19.3
26.0
81.2
35000-50000
28
9.3
12.6
55.2
42
14.0
18.8
100.0
223
74.1
100.0
77
25.9
300
100.0
Total
Missing
Percent
System
In this research 31.6% of respondents have monthly income In between 5,00020,000, 19.3% respondents lie in the second slab of income i.e. 20,000-35,000,
9.3% respondents have monthly income from 35,000 to 50,000 and 14% of
respondents having income of more than 50.000
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INTERVIEW QUESTIONS
Q1. Why should I prefer your Departmental/General Store?
DEPARTMENTAL/ORGANIZED STORES:
We offer variety, good environment and quality at an affordable
rate.
GENERAL/UNORGANIZED STORES:
We are time saving because we are easily available and we offer
credit and return policy.
Q7. What do you think about future of General stores in Pakistan, and why?
Both predict, it will remain same because departmental stores require a lot of planning and
large capital to establish and general stores require less planning and capital. Both increase
with the population.
Q8. Why dont you promote your store through mass marketing? (Departmental Store)
We spend more on customer service and facility thats why we spend more amounts on
customer service than mass marketing. We think customer service is itself a tool of marketing.
Q10. Do you think the pricing of departmental stores is less than general stores?
Both agree that pricing of departmental stores is less than general stores because they
purchase in bulk quantity.
Q9. What is the impact of your sales volume in last few years?
It remained same because of increasing competition and population.
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INTERPRETATION OF RESULTS
Most of the people prefer to purchase their daily needs products from unorganized retail
outlets (general stores) because of the convenient location
About 93% of the respondents have visited a departmental store which shows that the
concept of organized retailing attract them.
It has been clearly observed that people want to purchase their grocery from shops which
are less than 1 km far away from their homes they do not want to travel widely for grocery.
Around 53% of respondents think that their monthly expenditures increases when they
shop from organized retail outlets (departmental stores).
A large number of people replied that in future they will spend at organized retail outlets.
About 43% of people find prices of goods in departmental stores is less than general stores
and when the same question was asked to the owners of both the retail outlets they also
said that prices in departmental stores is less than general sores.
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It has been clearly observed in this survey that there is no such impact of organized retail
outlets on unorganized retail outlets. Both organized and unorganized retailers will run
their business at their places
.
The most important reason for shopping from organized retail outlets is better quality
products provided by these organized retail outlets.
A sufficient amount of people prefer to buy from general sores because of convenience.
It has been observed that long queue for billing in departmental stores is the core problem
faced by most of the respondents.
Unhygienic conditions of the general stores are the biggest problem that people are facing.
It has been seen that there is no impact of family size in the selection of retailing format
In survey we find most of the people are from lower income level group
About 10 % of respondent are from middle income group and 14 % of respondents are from
high income group.
Results revealed that most of the respondents are educated and most of them are doing
private job.
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CONCLUSION
The change in consumer behavior is bringing about change in retail industry, as
Pakistan migrates from the unorganized to organized retail. The past 5-6 years have
seen increasing activity in retailing. The share of organized sector will grow rapidly.
Retailing in Pakistan will provide many opportunities both to existing players as well as
new entrants. The country is witnessing a period of boom in retail trade.. More and
more corporate houses including large real estate companies are coming into the retail
business, directly or indirectly, in the form of mall and shopping center builders and
managers. New formats like super markets and large discount and department stores
have started.
The customers are attracting towards shopping malls & retail outlets because of the
better quality products and wide product range not only food items but also nonfood items is available under one roof.
Organized retail outlets are mainly targeting to middle and upper class customers
because the purchasing power of this class is rapidly growing as well as the class is
also growing. The customer from lower income is still not attracting towards this
format of retailing because they have perception that the prices of goods are much
higher in departmental stores as compare to kiryana stores.
The main strength of most of the retail outlets are providing attractive offers to
attract customers.
Organized retail stores are running customer loyalty programs which have increased
profits and no. of customers, and increase their switching costs.
However, this survey concluded that both Organized and unorganized will co-exist in
Pakistan for some time to come, as both of them have their own competitive
advantages. The kiryana has a low- cost structure, convenient location, and customer
intimacy. Organized retail offers product width and depth and a better shopping
experience under one roof.
To cap it all, organized retailing is here to stay in Pakistan, though it will never replace
the existing kirana stores
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While making a decision about the shopping location consumers are influenced
more by parents so it should be noted that it means that the organized
formats should also attract all type of customers in order get number of customers.
Customers are satisfied with staffs in organized formats but still they must increase
their personality.
Kiryana outlets also need to focus on proper shelf display so that customer gets
awareness of products and variety available in the shop.
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LIMITATIONS
The survey was conducted in specific regions of Karachi so result extracted
from this may vary in other regions
Due to time constraints the sample size was restricted to 300 which is
comparatively very less as compare to the entire population of the city.
The respondents had replied according to their own perception and experienc
e and therefore personal bias may also possible.
Some of the respondents were unable or unwilling to give a complete and
accurate response to certain questions.
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REFERENCES
Ghosh and Tripathi, (2010) Customer expectations of store attributes: A study of
organizedretail outlets in India, Journal of Retail & Leisure Property, Vol. 9, No 1, pg: 7587.
Urvashi Gupta, (November 2012) Changing consumers preferences from unorganized
retailing towards organized retailing: A study in Jammu, Journal of Emerging Knowledge on
Emerging Markets, Volume 4.
Amitava Roy (July, 10, 2010), Consumer buying behaviors towards organized retail outlets,
Asia Pacific Journal of Marketing and Logistics, Vol. 21, No. 1, pp 127-143.
WEB LINKS:
http://www.freeonlineresearchpapers.com/department-stores-pakistan
http://www.euromonitor.com/retailing-in-pakistan/report
http://www.retailindustry.about.com
www.google.com
http://thepiratebay.se/
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Bibliography
Q.1: Have you ever visited departmental stores? (If no, then go to question No 4)
Yes
No
Childrens/s demand
Q.3: From where you were shopping before buying from these departmental stores?
Neighborhood general store
Wholesale market
Any other
1-3 km
3-5 km
More than 5 km
Daily
Weekly
Fortnightly
Monthly
More than a
month
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Q.7: How many times do you visit the departmental stores in a month?
Once
2-3 times
3-5 times
Whenever required
Remain same
Decreased
Q.10: In future will you spend at organized retail outlets (departmental stores)?
Definitely yes
Probably yes
Cant say
Probably not
Definitely not
Q.11: Do you find that pricing of departmental stores is less than general stores?
Yes
No
Equal
May be
Q.12: Do you think the sales volume of unorganized retail outlets (general stores) will?
Definitely increase
Increase
Remain same
Definitely decrease
Decrease
Q.13: According to you, what are important factors for you when you go for shopping? (Rank 1-5; 1
means most important)
Location
Variety
Customer service
Quality
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Q.14: What are your reasons for shopping from departmental stores? (Rank 1-6)
Better quality
Good environment
Time saving
Display of products
Q.15: What are your reasons for shopping from general stores? (Rank 1-6)
Convenient location
Credit facility
Bargaining facility
Q.16: How do you find employees attitude in the departmental stores in compare to general stores?
Co-operative
Rude
Satisfactory
Q.17: What are the problems you face when you shop from organized retail outlets
(departmental stores)? (Rate 1-6)
Inconvenient location
No home delivery
Q.18: What are the problems you face when you shop from organized retail outlets (general stores)?
(Rate 1-6)
Unhygienic conditions of the stores
Billing problems
N a m e : __________________________
G e n d e r : Male
F a m i l y s i z e ( n o . o f m e m b e r s ) : ____
E - m a i l : _______________________
Qualification:
C o n t a c t N O : ___________________
Below matric
Under graduate
Graduate
Post graduate
Female
Other (specify)
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Age:
Below 20
20-30
30-40
Above 40
Occupation/Profession:
Self employed /Business
Government job
Private job
House wife
20,000-35,000
35,000-50,000
Thank you so much for your cooperation and giving us your valuable information.
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