Most recently, the Government of Punjab has gradually relaxed the restrictions implemented to curb the spread of COVID-19. The most recent one allows markets to open on Saturdays during limited timings. People were relieved to find out that they could finally visit their local stores during weekends for their urgent needs. Previously, people struggled as they had to rush after their work hours – sometimes not even able to make it on time.
2020 was a year filled with pivotal moments and experiments for all retail brands in the world. This was especially true for local stores that had to develop their digital touchpoints to execute better customer service strategies. Feelings of uncertainty have replaced the excitement of finally receiving a package by mail or delivery as people have adopted the habit of being more cautious. Customers yearn for face-to-face interactions, and as they return to physical spaces to enjoy in-store shopping, their expectations in relation to safety have skyrocketed.
Despite the rise in vaccination rates and governments around the world easing restrictions, COVID-19 remains to be an important concern for modern retailers like Carrefour in Pakistan. The standard has been set to meet and exceed customers’ expectations by ensuring they feel secure when they shop. This can be seen through the implementation of safety regulations and the creation of wider shopping spaces. That is where an increase in brand loyalty can be observed as people begin to trust brands to place their needs at the forefront of operations.
Small neighborhood stores dealing in loose products have noticed the positive impact that the modernisation of retail has on customers, and have started to adopt similar techniques of sorting, grading, and packaging daily items. In addition to these positive spillover effects that add value to the sector, modern retailers are also bringing in a considerable amount of foreign direct investment. This can be seen through Carrefour’s nine billion-rupee investment in Pakistan since 2009 which has created thousands of direct and indirect jobs in the process. Similarly, other retailers are also playing their part in changing the retail landscape of the country.
However, last year’s limitations on operating hours during lockdown are still adversely impacting the sales volume of leading retailers. This is despite the well-placed value pricing models that place the growing consumer demand and the evolution of consumer preferences in the country at the forefront of decision making.
With that in mind, an extension of shopping timings will help restore market confidence and stimulate economic activity to herd the nation towards a swifter economic recovery. This is important because according to the Chainstore Association of Pakistan (CAP) 16 percent of people that make up the labor force within Pakistan are from the retail sector and it is the second biggest contributor to the country’s economy.
The impact of an increase in shopping activity extends beyond the monetary value it brings from millions of customers to the economy, it would propel the community to become more financially stable. This is because it would lead to higher demand in produce from local farmers, and manufacturers ensuring that they are able to prosper by selling their commodities. The growth and sustainability of the retail sectors directly impact the economy and will facilitating it will help in mapping out an improved trajectory for the economic recovery of Pakistan.