The United Brands’ Association’s (BMD) member companies reported that both sales volume and turnover increased in April compared with the same month of last year and from March.
Three out of four companies operating in the organized retail industry saw their unit sales rose last month, according to a survey conducted by the BMD.
Unit sales give a better idea as to how the industry is doing, explains Sinan Öncel, the president of the BMD.
“Some 75 percent of member companies said their unit sales increased compared with April 2022 with 40 percent of them reporting at least 20 percent increase.”
Around 77 percent of member companies saw their unit sales rising in April compared with the previous month, according to Öncel.
Revenues, too, increased in line with inflation and unit sales, he said. “Some 70 percent of the companies managed to boost turnover by at least 80 percent on an annual basis,with 25 percent of them recording a turnover increase of 40 percent from March.”
Öncel also noted that the contribution of foreign shoppers to revenues was rather below expectations in April. “But starting from May, we anticipate their contribution to increase again due to the tourism season.”
The Turkish Statistical Insitute (TÜİK) reported earlier this week the consumer confidence index rose by 4 percent month-on-month from April to 91.1.
Problems with accessing financing along with high rental costs are weighing on investment appetite, Öncel also said. Some landlords demand a 400 percent increase in rents from retailers, he said, calling for a cap to limit rent increases to around 50 percent to 60 percent.