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In Pakistan the grocery retail sector has got an incredible change. In old era people used to shop

from KIRYANA store in the surroundings of house as it gave many benefits in form of counter

service formats, credit facilities, limited variety and personal service, but now retail sector got a

tremendous change as in form of great big retail stores which have provide facilities of selfservice store, organized aisles, greater choice, push - trolley system and a single check out point.

These large super markets were initiated in 1916 by Clarence Saunders when he opened the first

self-service store in Tennessee. In 20th century many different formats were introduced in

retailing like department stores, supermarkets, convenience stores, hypermarkets, wholesale

clubs, specialty stores etc. Officially small food retailers used to have a limited product line of

usually non-perishable goods. They can only achieve growth by 1) by adding more stores or 2)

by increasing sales volume also by 3) adding more product lines. Following are the forms of

product line enhancement: 1) a full line grocery store 2) a grocery-produce store 3) a full line

store. The selection of any of this form depends on least effort expended rule which means that

option will be selected which has least amount of risk of investment, loss of recovery. The

conversion of old retail store into large supermarkets will make it over the counter to self service

store. As it will facilitate by minimizing the cost of labor. The facts that are involved In

conversion are very much to the extent the Technological advancements and increase in

consumer income and consumer buying behavior as contemporary retail stores help on

minimizing cost and facilitate by providing one-stop-shop trend .Approximately 10% of

Pakistani population live in city so these advanced technological stores trigger these people who

live in urban areas , who have the purchasing power and at least have a car and are willing to

make intended visits to shopping stores. The Asia pacific region on the whole accounts for

$1,022.4 billion of retail sales in which the most popular form is supermarkets. It is expected togrow by over the period 2007-2012 with total market value by 38% .In Thailand in 1991 the

share for modern retail was about 5% which has gone up by 50% by 2001. Indian retail has also

got tremendous change. Indian food retail market is worth Rs. 7, 43,900 cores. The reasons of

this raise in Indian retail market are their education level, disposable income, family size and

also the occupation. In Pakistan the share of wholesale and retail in GDP was 1.1% in 2007-2008

and 1.4% in 2006-2007.The distribution of Kiryana store has been fallen from 1.61% to 1.5 %

and distribution of general stores has been rose up from 1.09% to 2.71% in Pakistan. It is

examined that demographic factors like age, family size, gender, occupation and income level

and also the psychographics have impact on selection of retail format. The most of big retail

stores are in large metropolitan because of many people have moved to urban areas and all havethese selective demographics in them which motivate them to buy from these large convenient

stores. Also the selection of retail format depends on the time a customer have and basket size.

As today most of the people dont have so much time to spend on shopping and also due to their

demand for variety they prefer one-stop-shop. Today people are fond to shop from specialty

stores or from supermarkets as retail trend has also been changed because of the technological

advancements people demand Foreign and Branded items, Frozen and ready to cook food.

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Despite of all, there is a lack of Fresh food items like meat and fruits in these big stores which

are not preferred by those families who prefer Fresh food. But people who have less Time to

spend on shopping , want to avoid crowding and queuing goes on these supermarkets .Families

used to go to these modern retail stores because it also provide a recreation trip with shopping as

it have good atmosphere there the music and lighting etc. The existence of these modern

retailers has created socio economic change in Pakistan and also the development, customer

awareness. It has helped to foreign retailers to invest in Pakistan as it creates employment

opportunities in country.

By the analysis we came to know that the effect of the demographic factorAge has no significant

effect on selection of retail format .Mostly younger people prefer malls and supermarkets but it

has been seen that in case of Pakistan most of the shopping is done through the elder persons of

the house or mostly by the females. As Pakistani females mostly prefer to purchase from near

Kiryana stores as it takes less time and facilitates un-planned trips to shop. So this shows that age

has no effect. Gender also have no effect on the selection of store as gender is independent from

this. But the Household size has effect on the choice of retail store as if number of family

members is higher, they will unable to afford to go on these specialty stores as it may be costly

for them. Their main focus will be just fulfillment of needs. Occupation also have no effect on

the retail store selecting because in Pakistan most shopping of grocery is done thru womens

who prefer to buy from near general store. Income level and Education level both have

significant effect on the selection of the retail format as people who are educated they will go to

the big malls due to their atmosphere and convenience and brands. And income level will also

effect as who have more money they will go to high malls and who have less money will rely on

near Kiryana store.