Retail companies faced weaker demand in July, according to a survey conducted by the United Brands Association (BMD) among its members.
Some 47 percent of the companies which responded to the survey said their unit sales declined last month compared with June, while 12 percent said it remained unchanged.
Around 41 percent of BMD member companies reported increases in unit sales in July from a month earlier.
There are signals that July marked the start of a difficult period for the retail industry, which enjoyed a strong first half, said Sinan Öncel, the president of the association.
The companies in the retail sector are now feeling the pinch from the increase in the interest rates on loans and the policies aimed at cooling off the economy through monetary tightening,according to Öncel.
He stressed that the pace of growth in turnover of the retail companies slowed last month despite the fact that it was the peak tourism season.
Some 58 percent of BMD member companies saw their turnover increase in July compared with June, while the turnover of 38 percent of the retailers declined, and 4 percent reported no change on a monthly basis, according to Öncel.
Slight increase in sales to foreign shoppers were is pleasing but unit sales were weaker compared with the last summer, Öncel said.
He recalled that the association called for sales campaigns starting from September, similar to the one launched in 2018 to fight inflation.
“This campaign may achieve two things at once: Help to bring inflation under control and keep demand strong,” Öncel said.