In 2011 for the first time, Turkey ranked among the ten most attractive destinations for retail investments. Compared to the previous year, the country thereby moved up eight positions. This is shown in the Global Retail Development Index (GRDI) 2011 of A.T. Kearney, the consulting firm, which, for the tenth consecutive time, assessed the attractiveness of 30 emerging markets for trading companies. According to this assessment, the Turkish market shows great potential. Especially in Istanbul and other major Turkish cities, the propensity to consume is constantly growing. The number of shopping centres, supermarkets and hypermarkets is growing. But also in medium sized cities, retail companies are beginning to invest in more compact store formats and establishing new locations.
cbi:///cms/240775The Turkish retail landscape is still organised rather traditionally. Currently, the top five retail companies hold a market share of less than ten percent. Independent, family-owned shops, the so-called Bakkallar, as well as open markets and bazaars are still very common across the country. According to estimates, Turkey currently has 550,000 Bakkalar shops. Especially in rural areas and smaller cities, where modern supermarkets and hypermarkets are still rare, traditional shops assume an important local supply function.
cbi:///cms/240779However, the retail market's development is dynamic and modern formats are increasingly gaining market shares. Among them are for example hypermarkets, supermarkets and neighbourhood shops, the number of which has been growing constantly since the beginning of the 1990s. Especially the retail companies Migros Türk/Migros Ticaret and the national retail company Kiler are systematically driving expansion in these segments. In 2010, hypermarkets, supermarkets, convenience stores, discounters and self-service wholesale stores combined generated approximately one fourth of total sales in the Turkish food distribution sector of approximately € 65.8 million.
cbi:///cms/240782
Also the investment initiative in the discount segment contributes to the structural change in the Turkish retail sector. Since the economic crisis, price-aggressive stores have become more popular with Turkish consumers. In Turkey, the sector's pioneer is the company Bim Birleşik Mağazalar A.Ş. which has been expanding since 1995 with a hard-discount concept similar to the German Aldi concept. A focused selection of products, own brand products and attractive prices are among the success factors of the Turkish discounter which already operates more than 3,230 stores in Turkey and Morocco.
cbi:///cms/240784
In the coming years, industry experts expect growth and consolidation to shape the Turkish retail landscape. Measured by turnover, the national discounter BIM is the market leader, followed by Migros Türk and Carrefour in cooperation with Sabanci Holding. Other important retail companies on the Turkish market are
METRO GROUP with the sales divisions Metro Cash & Carry and Real as well as Bizim Toptan, Tesco Kipa, Kiler, Makromarket and the discounter A101.
cbi:///cms/240786
To meet the increasing competitive pressure from the retail chains, independent grocers are beginning to cooperate in some areas of Turkey. A first cooperative was established in 2006 in Inegöl, in the rural district of Bursa province. Today, the cooperative has approximately 65 members. In Bursa, in Western Turkey, a similar plan became official in 2010. Among others, the independent store owners in the city and the surrounding province benefit from communal administrative assistance, storage facilities and standardised advertising.
cbi:///cms/240788