Retail industry is waiting for urgent ‘economic vaccine’

The year 2020, when many brands in the world went bankrupt or shrank due to the epidemic, was also difficult for the Turkish retail industry. stores in Turkey, retail sales, except for a few limited categories such as electronics and furniture, but could reach 60 percent on average in 2019. In the last month of the year, which is seen as the ‘savior of the year’ for some categories, the sector hardly caught an average turnover of 50 percent.

United Brands Association (BMD) President Sinan Öncel stated that the dramatic loss in turnover was also strikingly revealed by the December survey among the association members. Öncel said that if the very urgent ‘economic vaccine’ is not made, many brands will face the danger of shutting down in the near future.

BMD President Sinan Öncel

Emphasizing that they are going through an extraordinary process, Öncel underlined that the retail problem cannot be solved with the conditions and rules of the normal period. Reminiscent of the higher judiciary discuss the lease sale in Germany Jones, In Turkey, especially in the streets sale of some property owners reported that they send invoices with a raised rents since 2021. Öncel explained their suggestions that they want to be applied urgently for retail and what he calls ‘economic vaccine’ as follows: “During the period when the epidemic conditions continue, property owners should be provided with tax exemptions to compensate their losses in the coming years and a 50 percent reduction in store rents should be made. The General Expense Regulation, which is on the agenda of our Ministry of Trade, should be issued as soon as possible. The right to exit the damaged store should be given without compensation, provided that one month’s notice is given. VAT and withholding rates should be reset in rentals. “

December did not give hope

The last month of the year was recorded as a period of intense campaigns by black friday and e-commerce sites and brands. While there was a significant increase in e-commerce, the same activity was not seen in stores. In the BMD survey, the results for December were listed as follows: 66 percent of the shopping mall stores were below 60 percent turnover in the last month of the year. Despite easy access, 71 percent of high street stores could not achieve 80 percent turnover. 55 percent of BMD members increased their e-commerce turnover by over 100 percent.

E-commerce increased to 21% of turnover

According to the survey, 56 percent of the stores in shopping malls, 86 percent of ready-to-wear brands and 88 percent of shoe brands did not even reach 70 percent of 2019 in 2020. 31 percent of BMD members generated at least 21 percent of their total turnover from e-commerce.


Source: Dünya Gazetesi by www.dunya.com.

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