Turkish supermarket

In a recent report entitled “Retail in Turkey 2009” conducted by analysts PMR, Turkish retail sales grew by 11 per cent in 2008 to reach €118bn.

The retail sector in Turkey remains relatively underdeveloped in comparison with the rest of Europe, with a significant portion of the market controlled by independent retailers.

In addition, approximately one-third of retail sales are still made by traditional channels, like bakkals (small mom-and-pop stores), open markets and street vendors.

As such, the report concludes, Turkey’s retail market appears highly promising for the expansion of modern retail outlets, both organically and by mergers and acquisitions.

In 1996, Carrefour Turkey established a joint venture with the Turkish holding company Sabanci to create CarrefourSA, while in 2003, domestic retailer Kipa was acquired by British supermarket chain Tesco, creating Tesco-Kipa. Both foreign firms are now engaged in further acquisitions.

According to PMR, the relative underdevelopment of the Turkish market, combined with the country’s large population and ambitious plans for shopping centre schemes, mean that the potential is vast for the expansion of modern retail formats.