TURKEY COUNTRY REPORT
Turkish Council of Shopping Centers and Retailers
Mehmet T. NANE
Chairman
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CONTENT
I.
DEMOGRAPHIC INDICATORS of TURKEY
a. DEMOGRAPHIC INDICATORS FOR RETAIL
b. INCOME DISTRIBUTION OF THE POPULATION
c. INCOME DISTRIBUTION & FMCG EXPENDITURE
II. INDICATORS OF RETAIL
a. MACROECONOMIC INDICATORS of RETAIL
b. SHOPPING CENTERS SECTOR IN TURKEY
c. AMPD RETAIL INDEX by NIELSEN
III. MACROECONOMIC INDICATORS of TURKEY
a. CURRENT SITUATION
b. FORECAST
c. EXPORT AND FOREIGN TRADE in TURKEY
d. TAX RATES in TURKEY
e.
WORLD BANK PRIVATE SECTOR INDICES RANKING
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TURKEY: A BRIDGE BETWEEN TWO WORLDS
Turkey facilitates the accession of
East to West and West to East through TEM highway,
And North to South and South to North through the straits
And now comes the Marmaray underground tunnel to make the
continents come closer
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TURKEY: A BRIDGE BETWEEN TWO WORLDS
There are around 950 million people living
in 3 hours flight distance to Istanbul.
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I. DEMOGRAPHIC INDICATORS of TURKEY
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I. DEMOGRAPHIC INDICATORS of TURKEY
Î YOUNG & EDUCATED POPULATION
73 MILLION POPULATION
™ 15-64 years
™ 0-14 years
™ 0-25 years
™ Average age:
67%
26%
44%
28,5
™ Second largest population in Europe
™ Youngest population in Europe
™ With 24,7 million people in labour force, 4th largest labour market in
Europe
™ Every Year: 730.000 Graduates From High Schools,
450.000 Graduates From 161 Universities
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Source: TurkStat
I. DEMOGRAPHIC INDICATORS of TURKEY
A. DEMOGRAPHIC INDICATORS FOR RETAIL
Young population signals room to go in household expenditure
™ According to Shopper Index Research;
™ 60% of the shopping center visitors are below 30 years of age.
™ Highest shopping frequency: 15-25 years of age
™ Highest average spending: 25-34 years of age
Source: IPSOS- KMG
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I. DEMOGRAPHIC INDICATORS FOR TURKEY
B. INCOME DISTRIBUTION OF THE POPULATION
Total private consumption expenditure in 2008: 534 Billion USD
ANNUAL DISPOSABLE INCOME DISTRIBUTION IN TURKEY 2008
45.000
40.000
38.186
35.000
30.000
25.000
20.251
20.000
15.567
12.773
15.000
10.730
10.000
9.117
7.661
6.337
5.027
5.000
3.207
1st %10 2nd %10 3rd %10
4th %10
5th %10
6th %10
7th %10
8th %10
9th %10 10th %10
Source: TurkStat
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I. DEMOGRAPHIC INDICATORS FOR TURKEY
C. INCOME DISTRIBUTION & FMCG EXPENDITURE
INCOME DISTRIBUTION & FMCG EXPENDITURE
Upper
28,1%
45,1%
Upper-Middle
22,7%
Middle
Lower-Middle
Lower
22,1%
19,2%
15,7%
16,6%
10,9%
6,2%
13,5%
Income Distribution
FMCG Expenditure
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Source: Nielsen
II. INDICATORS OF RETAIL
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II. INDICATORS OF RETAIL
Î Total turnover in 2010: $171 BILLION; 75 BILLION IN ORGANIZED
RETAIL
Î Sales areas have reached 23 MILLION SQUARE METERS
Î 1,8 MILLION employees in total in 2010, 520.000 employees in
organized retail
Î NUMBER 7 RETAIL SECTOR IN EUROPE,
Î NUMBER 10 RETAIL SECTOR IN THE WORLD
Î NUMBER 5 IN FOOD SPENDING IN EUROPE
Î NUMBER 8 IN NON-FOOD SPENDING IN EUROPE
Sources:TCSCR, Cushman& WakefIeld and DeloItte Reports.
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II. INDICATORS OF RETAIL
a. MACROECONOMIC INDICATORS of RETAIL
TURNOVER (BILLION USD)
2009
2010
2011 e
ORGANIZED RETAIL
72
75 (4% GROWTH)
79 (5% GROWTH)
TOTAL RETAIL
148
171
180
GROWTH RATE – 2011 H1
FOOD
1%
NON-FOOD
12%
APPAREL
14%
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II. INDICATORS OF RETAIL
a. MACROECONOMIC INDICATORS of RETAIL
EMPLOYMENT
2009
2010
2011 e
ORGANIZED RETAIL
450.000
520.000 (15% GROWTH)
615.000 (16% GROWTH)
GROWTH RATE – 2011 H1
FOOD
NON-FOOD
APPAREL
TOTAL RETAIL
1.81 MILLION
1.83 MILLION
1.85 MILLION
8%
16%
27%
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II. INDICATORS OF RETAIL
a. MACROECONOMIC INDICATORS of RETAIL
RETAIL SALES AREA
ORGANIZED RETAIL STORES:
2009
On average, 13 new stores every day
2010
On average, 20 new stores every day
ORGANIZED RETAIL STORES & SALES AREA:
2009
40.000
10 million m2
2010
48.000
12 million m2
2011e
55.000
14 million m2
GROWTH RATE – 2011 H1
FOOD
NON-FOOD
APPAREL
10%
23%
33%
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II. INDICATORS OF RETAIL
b. NUMBER of SHOPPING CENTERS IN TURKEY
Source: JLL
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II. INDICATORS OF RETAIL
b. SHOPPING CENTERS SECTOR IN TURKEY
EU average for
GLA per 1000
capita is
172 sq m.
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II. INDICATORS OF RETAIL
b. SHOPPING CENTERS SECTOR IN TURKEY
Turkey ranks 2nd
in Europe for the
highest GLA in
the pipeline, after
Russia.
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III. MACROECONOMIC INDICATORS of TURKEY
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III. MACROECONOMIC INDICATORS of TURKEY
a. CURRENT SITUATION
™ 2005-2008: 13% REAL GROWTH in GDP
™ RETAIL TRADE CONSTITUTES 20-22% OF TOTAL GDP AND
ORGANIZED RETAIL REPRESENTS 9-10% OF TOTAL GDP
Source: TURKSTAT
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* Values by the end of June 2011.
III. MACROECONOMIC INDICATORS of TURKEY
a. CURRENT SITUATION
™ SERVICES SECTOR ACCOUNT FOR 60% OF TOTAL ECONOMY
™ SHARE OF ORGANIZED RETAIL IN TOTAL RETAIL IS 44%, THE EU
AVERAGE IS 85%
Source: TURKSTAT
* June 2011.
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III. MACROECONOMIC INDICATORS of TURKEY
a. CURRENT SITUATION
Î TOTAL FDI IN 2004-2010: 87,2 BILLION USD
CREDIT RATING OF TURKEY IMPROVED:
™Standards& Poor : BBB- ; positive
™Moody’s : Positive
™Fitch: Stable
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III. MACROECONOMIC INDICATORS of TURKEY
b. FORECAST
Î EXPECTED 5.6% GROWTH BETWEEN 2005–2050;
Î By 2017: EXPECTED TO HAVE THIRD HIGHEST GROWTH RATE
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AFTER CHINA AND INDIA (OECD)
III. MACROECONOMIC INDICATORS of TURKEY
b. FORECAST
™ GDP PER CAPITA (PPP ADJUSTED):
2010 15.392 USD
2011 16.926 USD
™ UNEMPLOYMENT RATE:
2010 11,9%
2011 11,0 %
™ 2023 TARGET
Year
SC
number
Sales
points
Employment
Organized
Total Retail
Retail Turnover Turnover
(USD)
(USD)
2010 263
48.000
520.000
75 billion
171 billion
2023 520
84.000
1.250.000
150 billion
190 billion
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I. MACROECONOMIC INDICATORS of TURKEY
c. EXPORTS & FOREIGN TRADE in TURKEY
Manufacturing Industry is %93,4 of Total Exports of Turkey
World ranking:
™1st in cement exports
™2nd in jewelry exports
™2nd largest glass producer
™1st in boron production
™2nd in glass production
™4th luxury yachts production
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I. MACROECONOMIC INDICATORS of TURKEY
c. EXPORTS & FOREIGN TRADE in TURKEY
TRADE WITH EU
TURKEY is EU’s 7th Largest Trade Partner
Turkey is:
™ 1st TV, DVD player, Bus manufacturer
™ 2nd largest commercial vehical and cement manufacturer
™ 2nd largest textiles supplier
™3rd largest producer of steel and ceramic tiles
™3rd largest motor vehicle supplier
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III. MACROECONOMIC INDICATORS of TURKEY
c. EXPORTS & FOREIGN TRADE in TURKEY
TRADE WITH EU
Turkey is a net exporter of food products and beverages
™ Turkey's agricultural production is equivalent to 40% and 20% of EU25 production of fruits and vegetables respectively.
™ Turkey has an agricultural area equivalent of 23% of the EU-25
™ Turkey hosts 75% of all plant species in Europe
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III. MACROECONOMIC INDICATORS of TURKEY
c. EXPORTS & FOREIGN TRADE in TURKEY
TRADE WITH ASIA
Share of Asian countries is above 50 % in 24 sectors
™93,4% of bags, suitcases and saddleries,
™93% of toys,
™92% of bicycles,
™87,5% of musical instruments,
™86% of sports equipments
are from Asian countries
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III.MACROECONOMIC INDICATORS of TURKEY
d.TAX RATES IN TURKEY
VALUE-ADDED TAX (VAT)
1% VAT FOR:
™ Grain (wheat, oat, rye), dry fruit
8% VAT FOR:
™ Meat (red meat, chicken, fısh), dairy and animal products
™ Vegetables, fruits, coffee, tea, cacao, cereal, seeds, flour
™ Vegetable oil, animal fat, butter
™ Pastry, soft drinks, liquor
™ Accessories (bag, shoes) and textiles
™ Electronics, furniture, real estate
18% VAT FOR: Other goods and services
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III.MACROECONOMIC INDICATORS of TURKEY
d.TAX RATES IN TURKEY
VALUE-ADDED TAX (VAT)
1% VAT FOR:
™ Grain (wheat, oat, rye), dry fruit
8% VAT FOR:
™ Meat (red meat, chicken, fısh), dairy and animal products
™ Vegetables, fruits, coffee, tea, cacao, cereal, seeds, flour
™ Vegetable oil, animal fat, butter
™ Pastry, soft drinks, liquor
™ Accessories (bag, shoes) and textiles
™ Electronics, furniture, real estate
18% VAT FOR: Other goods and services
CORPORATION TAX
™ Rate for 2011: 20%
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III.MACROECONOMIC INDICATORS of TURKEY
E. WORLD BANK PRIVATE SECTOR INDICES RANKING
CRITERIA
Ease of doing business index
RANGE
TURKEY
easiest: 1; hardest: 181
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Number of start-up procedures
to set up a business
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Time required to set up a
business (days)
6
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WITH VARIOUS OPPORTUNITIES FOR
YOU AND YOUR COMPANY,
TURKEY
IS A COUNTRY WORTHWHILE
TO EXPLORE CLOSELY
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SEE YOU IN
“THE NEW WORLD
THE NEW RETAIL
THE NEW CONSUMER”
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