A total of 123 companies from the association’s members participated in the survey, including 56 ready-to-wear stores and 25 shoe stores, out of 416 brands affiliated with the association.
In a report published by the Turkish daily “Dunya” last Wednesday, Sinan Uncal, Chairman of the Board of Directors of the Union of Brands Association, said that despite seasonal discounts, the rate of the association’s member stores operating in shopping centers increased despite the fact that their sales volume remained below 50 percent. Where the rate reached 24 percent in August, after it was 17 percent in July.
The average sales of companies registered in the association, which exceeded 81 percent in sales, decreased from 38 percent to 28 percent in the same month, according to Unjal, while demand for furniture increased significantly, in addition to a noticeable increase in sales of computers, mobile phones, sports shoes and jewelry.
“In street stores (outside malls), the average number of stores with more than 81 percent sales has gone down from 55 percent to 49 percent,” said Ongal, stressing that many customers have budgeted for housing and cars because of the attractive loans offered by government banks.
According to Unjal, the largest decrease was recorded in the sales volume of the ready-to-wear companies that make up more than half of the members of the Association of Brands Association.
The proportion of member stores in commercial shopping centers whose sales remained below 50 percent rose to 31 percent in August, after it was 19 percent in July, while the proportion of ready-to-wear companies in shopping centers whose sales exceeded 81 percent decreased from 49 percent to 29. The percentage of ready-to-wear companies in the streets that achieved sales decreased by more than 81 percent, from 57 percent to 45 percent in the same period.
Ongal pointed to the decrease in spending on ready-made clothes and restaurants in the mentioned period, and its increase on electronic products such as mobile phones, laptops, televisions, white goods, furniture, bicycles and “scooters”. He stressed that weddings, which increased as life returned to normal, “also contributed significantly to sales of branded jewelry.”
Electronics, furniture and jewelry brands achieved a sales volume increase of 100 percent or more in August in both malls and streets. There was a huge boom in demand, especially in the furniture sector. After housing sales in the country jumped due to a series of campaigns launched by government banks to revive the country’s economy that was affected by the Covid-19 pandemic, which contributed significantly to related sectors such as furniture.
Ready-to-wear exports rise
According to Onjal, the ready-to-wear sector, which experienced a loss in the local market, has achieved good exports abroad. The sector saw the highest export numbers in August. The ready-to-wear sector also broke a monthly export record with $1.8 billion (13 billion Turkish liras) in July.
Ungal stressed the link between the decline in clothing sales and the changing habits during the epidemic; Noting that sales of suits and office wear have declined as people work from home during the pandemic.
Another factor affecting the retail industry was the tourism sector. According to Unjal, tourism expenditures contribute significantly to retail sales. This year, there was a sharp drop in the number of tourists with the spread of the epidemic.
“Last year, our country attracted $34.5 billion in tourism,” Ongal says. However, the most optimistic estimates are that tourism expenditures are expected to remain around $10-12 billion this year.
Ongal noted that foreign spending was well below the retail industry’s expectations.