Its nearly 11 pm on a Saturday evening and the DHA Z-Block market in Lahore is in full throes. Mothers with toddlers make their way cautiously along rain-swept roads, maneuvering through a steady stream of traffic, while families sit out on a make-shift forecourt in front of Tutti Frutti, having frozen yogurt in the light drizzle. Couples sit on the elaborate tables set out in front of Gloria Jeans, sipping steaming lattes while a block away female shoppers spill out of the newly opened Mango, clutching large shopping bags filled with high-street designer goodies. Next-door, the Al-Karam Studio is ablaze with light, and through the huge plate-glass windows families can be seen inside, perusing through the brands latest mid-summer collection. Its 2012, and no matter how much you rue the state of the countrys economy and the underperforming industrial sector, Pakistanis are out there shopping and eating like theres no tomorrow. The huge neon signboards advertising international brands like Zara, Charles & Keith, Caanchi & Lugari and Splash blink away faithfully into the night, bearing testament to the unbounded rise of consumerism in a country which is considered by many to be an insurgency riddled failure. When Goldmans Sachs Jim ONeill marked Pakistan amongst the Next-11 -countries with the potential to become the biggest economies of the 21st century after the BRICs- he wasn far off the mark. Fast forward seven years and Pakistan today has become a haven for foreign retail giants who want to exploit the heightened brand aspirations of the countrys urban population -which has nearly trebled in the last 30 years. The growing middle class, improved means of communication, smaller household sizes and an increasing inclination of women to work have all contributed to this unprecedented rise of consumerism- so much so that the retail and wholesale sector in Pakistan is valuated to be worth nearly 40 billion dollars as of 2012. Moreover, evidence of the increasingly strong consumer dynamics comes through the sectors growth statistics. While Pakistan has seen one of the worst periods of economic stagnation in FY08-09, the last five years have witnessed the sector grow by an average 3.1 percent per annum. With early entrants in the form of Germanys Metro Cash and Carry and Frances Carrfour- which operates locally under the name of Hyperstar- the countrys increasingly affluent middle class is attracting attention like never before. Greater availability of disposable income makes it easier for these middle class consumers to spend on non-essential commodities that have previously been considered luxury items. The Economists Intelligence Unit forecasts that Pakistans retail sales volume growth is likely to reach 8.6 percent in 2014, a fact that spells lucrative opportunities for retailers who want to capture the nations need for variety in products and retail formats. With brand outlets, department stores and specialist boutiques such Mothercare, Debenhams and Moda in Pelle all propping up across the countrys thriving cities, the future for retail in Pakistan has never been brighter.
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