Impact of Information Technology on Retail Sector in Pakistan
Rashid Ali
Faculty Member at Iqra University
Dr. Masood Subzwari
Professor at Iqra University
Shaista Tariq
PhD Scholar at Indus University Karachi
Abstract
Pakistan’s retail business or retail sector has greater opportunity and huge scope or potential growth in the business of retail. Even compared to its south Asian counterparts, Pakistan is behind in terms of development, structure and organization. Awareness through media and overseas employment has created a market for large general stores and supermarkets during the last 25 years. Modern retail businesses require better information technology for efficient operation and management utilizing systems such as Point of Sale (POS), Retail Management Systems (RMS), retail inventory management systems and thus an increased demand for these systems in Pakistan. The purpose of this research project was to explore the potential of information technology (IT) based systems in retail sector in Pakistan. The research was based on interviews and structured surveys to find the answer to the research objectives. The research found that IT penetration in the retail trade is taking place at an astounding rate and while tiny corner street store/village stores may be reluctant to use the electronic registers or POS, all medium and large stores see using information technology making massive inroad into the retail business. The attempt to introduce Revised General Sales Tax (RGST) and better documentation of retail and other businesses will only accelerate the use of modern information technology.
Keywords: POS, RMS, IT, RGST, GDP, VMI
