Sales of Turkish organized retailers recovered in August after the sector contracted in the previous month, said Sinan Öncel, the president of the United Brands Association (BMD).
Some 59 percent of the companies, which are members of the association, increased their unit sales last month compared with July, while turnover of 70 percent of member companies rose month-on-month, according to Öncel.
People apparently continued to bring forward their consumption because they still anticipated that prices would increase further in the coming months, Öncel said. “We think this was the main reason for the recovery in sales in August.”
August also marked the highest sales to foreign tourists in 2023, he said, noting that 59 percent of member companies reported increases in their sales to foreign shoppers.
Öncel recalled that sales in the apparel, shoes and food sectors contracted in July.
“There was a recovery in sales in August compared with July,but sales were still far from the levels seen in June.”
Card expenditures on clothing, which amounted to 63.7 billion Turkish Liras in June, dropped to 44 billion liras in July, but they rose only slightly to 45.5 billion liras in August, according to Öncel.
“From January to August, June was the best month for retailers.”
Öncel predicted that the non-food organized retail may contract in the upcoming months due to both monetary tightening and the decline in purchasing power.
Retailers face problems regarding excessive rent hike demands from landlords, he also said.
“Some landlords even ask for rent increases between 400 percent to 500 percent. We demand that rent hike for businesses should not exceed 50 percent to 60 percent of inflation until the end of 2024. Such a limit on rent hikes could also help fight inflation,” he said.