Pakistan’s retail sector has a significant role to play in the overall economic landscape. In addition to employing 14% of the country’s total workforce, it contributes to 18% of the national GDP. With a population of 220 million and counting, Pakistan has a sizeable demographic that relies on retail purchases, a fact that has encouraged major international chains to establish local footprints.
Over the past few years, the country’s retail sector has achieved major growth milestones. Being a major catalyst in the economic development equation, some of the leading retail chains like Carrefour plan to substantially uplift this sector through modernization and incorporation of some of the latest technological advancements. A recent conversation with Hani Weiss, Chief Executive Officer of Majid Al Futtaim – Retail – operater of the Carrefour franchise in the Middle East, Africa and Asia - , during his recent maiden visit to Pakistan helped to outline the economic potential of modernizing Pakistan’s retail sector and how Carrefour is leading the way towards this realization. Video and text excerpts of this exclusive conversation can be viewed as under.
“We started back in 2009, currently we are operating 10 stores in Pakistan in addition to two new ‘myli’ health and beauty stores which have been recently inaugurated. Besides the grocery business which continues to evolve day and night, we introduced digital experiences as part of our omni-channel offering. Pakistan is a considerably large country with a population of 220 million. Coupled with a GDP in Pakistan almost touching 67 billion rupees, growing by 20 percent since last year, we believe a lot of opportunities lie ahead within this nation,” commented Hani Weiss, Chief Executive Officer of Majid Al Futtaim – Retail during his recent maiden visit to Pakistan.
Pakistan’s retail sector services nearly 60% of the population that falls in the bracket that earns some form of income to support their households. People indulge in some form of retail shopping be it at the traditional kiryana stores in their neighborhoods or at large multi-departmental marts that are open across the country. However, with time, consumer consumption behavior all over the country has evolved.
“The retail sector has undergone significant transformation over the years. In the past, small grocery stores used to know their customers by name and would know exactly which items they liked. We lost this touch when small grocery stores grew bigger in size and became big box retailers who acted like an icebox offering no experience, personalization, and connection with the customers. Comparatively, customers today expect more personalization in their retail experience,” Mr. Weiss highlighted.
With Gen-Z shaping the trends in almost every industry, technology is playing a substantial role for key stakeholders to modernize existing infrastructures. The retail industry is no different. From modernizing inventory management systems to potential self-checkout booths soon to be introduced by major retailers, the landscape is transforming rapidly.
While commenting on these developments, the CEO of Majid Al Futtaim Retail agreed by saying, “Technology is playing a major role in the way we do business to cater to the needs of millennials and Gen-Z. For them, value is not only about price but also time. They want to go fast and prefer the convenience of ready-to-go products. Considering this shift in consumer preferences, retailers such as Carrefour, are continuously evolving their business model to cater to these changing expectations.”
He added further that his company doesn’t perceive this as a challenge but a natural attribute of the retail sector to consistently innovate and offer something new to the customers as per their needs. “At Carrefour, we are creating an omni-channel experience for our customers to give them the freedom to shop online or offline or a mix of both subject to their choice”, said Hani Weiss. He also believes that this is how the new retail experience will look in the future.
In the wake of the COVID-19 pandemic, retail has ventured into the domain of digitization as well. Although things appear to have greatly normalized now since the start of the pandemic with physical shopping having resumed across the country, still the demand for omni-channel experiences exist. Retailers like Carrefour are experimenting on numerous fronts, particularly with respect to technology and going digital.
“We have more than 110 data scientists working on technologies like machine learning and artificial intelligence to introduce a seamless and automated shopping experience for customers. While digital technology can help us transform our business, they can also make shopping more convenient for our customers,” noted Mr. Weiss.
Carrefour’s Valet Trolley service is one such offering which will soon be introduced to Pakistan, whereby customers can enjoy the in-store shopping experience and their orders can later be delivered at their doorsteps the same day as they continue with their daily lives, be it work or leisure according to Hani Weiss. “We also plan to install unmanned checkout counters in our two new upcoming stores in Pakistan, allowing customers to check out by themselves, as well as introduce, our scan-and-go service allowing customers to scan their products, bag them, pay and leave in a time-efficient manner, autonomously,” he added further.
The holistic retail experience in Pakistan has been witnessing massive changes over time. With brands like Carrefour and their vision for the future of shopping in the country, customers can look forward to more seamless services as time progresses.
