Foreign shoppers boost malls’ revenues

ISTANBUL

Some 50 percent of revenues of retailers operating in shopping centers come from foreign tourists, people from the industry said, voicing concern that domestic demand may not remain strong in the period ahead.

Tourism activity has been strong, which supports sales in shopping malls, said Serhan Tınastepe, chair of the Chain Stores’ Association (ZMD).

“More than 50 percent of our member companies generate their revenues from sales to foreign tourists. But we have concerns regarding the sustainability of the strong domestic demand, which is currently due to pent-up demand,” Tınastepe said, adding that the industry is keeping a close eye on planned actions to regulate the retail sector and e-commerce.

The ZMD represents companies with a total revenue volume of 350 billion Turkish Liras.

The shopping centers retail revenue index increased by 99 percent in March from a year ago and rose by 20 percent from April, the latest survey by the Council of Shopping Centers (AYD) showed.

The index for the number of visitors, on the other hand, lept 83 percent in the first quarter of 2022 from the same period of last year, according to the survey.

Some 6.5 million to 7 million people visit shopping centers each day, said Hüseyin Altaş, chair of AYD.

Altaş, however, noted that the value of shopping center investments has declined. “The $100 billion worth of investments are now worth $40 billion, our rent prices which stood at $100 seven years ago fell to just $20,” he explained.

The problems in supply chains do not affect consumers but energy costs are rising, said Melih Şahinöz, chair of the Foodservice Suppliers’ Association (ETÜDER).

“On the upside, business in the food and tourism sectors is good,” he said.