Pakistan’s Retail Industry — Still Built for Yesterday’s Shopper?

Aug 9

We’ve polished the stores.
We’ve upgraded the lighting.
But have we redesigned the business?

A Personal Observation

Last week, I visited a well-known retail outlet in Karachi.
The space was beautiful — clean aisles, well-stocked shelves, attentive staff.

But then I asked for a specific product.
The response?

“You can check other store, maybe they have it.”
No online inventory check.
No option to reserve the item.
No simple click-and-collect.

It wasn’t about inconvenience — it was a signal.
A sign that many retailers here are still running on a 2005 playbook in a 2025 market.

The Consumer Has Already Moved On

Today’s Pakistani shopper:

Browses online before stepping into a store
Compares prices in real-time on their phone
Expects same-day delivery or at least a clear pickup option
Wants loyalty programs that actually work, not just paper punch cards

If these expectations aren’t met, the switch to another retailer - local or online - is just one tap away.

The Market Size — And the Missed Opportunity

Pakistan’s retail sector is valued at over $150 billion, employing millions and accounting for 18-20% of GDP.
It’s the third-largest sector in the economy, and it’s growing - thanks to a young, urbanizing population and rising internet penetration.

Yet, most of that growth is happening despite the lack of systemic retail innovation, not because of it.

In countries like the UAE and Singapore, retail transformation is powered by business design:

True omnichannel integration
Real-time inventory and pricing powered by data
Stores that focus on engagement and loyalty, not just transactions

Why the Urgency Is Now

Here’s the uncomfortable truth:
The next five years will decide who dominates Pakistan’s retail market for the next two decades.

Global entrants are eyeing this space.
Regional e-commerce players are already experimenting with local fulfilment.
And digital-first startups are bypassing traditional retail entirely, building direct-to-consumer brands that own the entire customer relationship.

For existing retailers, the window to transform is shrinking.
For new entrants, the window to disrupt is wide open.

The Call to Action

Pakistan’s retail industry can no longer afford cosmetic upgrades — we need structural redesign.

To the established players:

Invest in systems, not just store fronts
Rethink KPIs beyond daily sales to focus on customer lifetime value
Collaborate with tech partners to build seamless customer journeys

To the new entrepreneurs and investors:

This is your moment. The market is massive, the consumers are ready, and the incumbents are slow to adapt.

The question is — who’s going to seize the opportunity before it’s gone?

RetailTransformationBusinessDesignRetailInPakistanEcommerceOmnichannelRetailInnovationCustomerExperiencePakistanBusinessRetailTrendsBusinessConsultingCXDesignFutureOfRetailDigitalTransformation

Salman Sayyid