Mega malls: High luxury, low sales
A decade ago, shopping in Pakistan meant visiting traditional marketplaces where bargaining was an art and small vendors thrived. Fast forward to today, and the retail landscape has undergone a dramatic transformation, with massive shopping malls now defining urban centres across the country.
From Karachi's Lucky One Mall to Lahore's Emporium Mall and Islamabad's Giga Mall, these retail centres have become symbols of modern consumerism. But has the mega mall culture truly reshaped the shopping habits of Pakistanis, or is it merely an elaborate social experience?
The rise of mega shopping malls in Pakistan can be attributed to changing lifestyles, urbanisation, and an increasing preference for organised retail experiences. Over the past decade, developers and investors have poured billions of rupees into constructing multi-story shopping destinations, aiming to replicate the success of global retail hubs. Inspired by mega malls in Dubai, Turkey, and Malaysia, Pakistan's real estate industry has recognised malls as an essential part of modern city infrastructure.
According to Shahid Ali, a real estate economist, this transformation was inevitable. "With rapid urban expansion and an increasing middle-class population, shopping malls became an essential need rather than a luxury." Pakistan's major cities now have multiple malls, but there is still room for growth, especially in second-tier cities like Faisalabad, Multan, and Peshawar. Developers are gradually shifting their focus to these regions, recognising their untapped potential, he added.
However, despite these developments, questions remain about whether these malls are truly driving retail sales. Many large retailers agree that a presence in a mega mall is no longer just about sales figures but about brand positioning.
"The big retailers have no choice but to secure a place in every shopping mallnot because it will boost sales but to show people that we are growing and available at multiple locations," says Jamil Ahmed, a Senior Executive at a leading fashion retail chain. "People may not always buy from our outlet in the mall, but being there ensures visibility, brand recognition, and credibility."
Retailers acknowledge that while foot traffic in malls is high, conversion rates into actual sales remain a challenge. Many visitors come for the air-conditioned ambiance, food courts, and entertainment rather than serious shopping. "We see a lot of families and young people spending time here, clicking pictures, and window shopping. Sales happen, but they are not as high as in standalone flagship stores or high-street markets," said Naeem Khan, owner of a major footwear brand.
For shoppers, malls offer a comfortable and convenient alternative to open markets, but pricing remains a key concern. "The experience is great. You get all brands under one roof, there's security, and you can eat and shop at the same place. But the prices are usually higher than what you find in the open market," says Nadia Malik, a frequent visitor. "Sometimes I check the products here and then buy them online or from local shops where the price is lower," she added.
Others appreciate the variety and the shopping experience but still express scepticism about overall affordability. "In markets, you can negotiate. Here, everything is fixed price. Also, parking and food courts add to the overall expense," remarks Ali Haider, another shopper in Lahore.
Globally, mega malls have been a game-changer for retail economies. Cities like Dubai, Singapore, and Bangkok have leveraged their malls as tourist attractions, drawing millions of visitors annually. The Dubai Mall, for instance, is not just a shopping hub but a complete entertainment district with an aquarium, an ice rink, and even a fountain show.
Compared to these international giants, Pakistan's malls are still evolving. While they offer cinema experiences, food courts, and kids' play areas, they have yet to match the scale and integration of global retail centres. However, real estate experts argue that Pakistani malls are growing in sophistication and will soon incorporate more immersive experiences to increase footfall and engagement.
"We should accept the fact that Pakistan is not a tourist destination, so we may not get the desired results as in other countries," said Waseem Tariq Malik, a real estate economist. "Still, a lot has changed since the mega mall culture entered Pakistan. It has also transformed shopping habits for many Pakistanis. I believe this trend will slowly but steadily change people's habits, and it remains a profitable investment for developers, considering ever-growing rental prices. Developers are now expanding from first-tier to second-tier cities."
While the exact economic impact of this culture remains uncertain, what is clear is that Pakistan's urban landscape will continue to witness the rise of these massive shopping destinations, reshaping how people shop and spend their leisure time, Malik added.