Government mulls tuning retail market

Aysel Alp ANKARA / Hürriyet

The government has begun to work on a new scheme that regulates the investment plans of retailers, aiming to avoid huge accumulations. DAILY NEWS photo

A draft code that the Customs Ministry has been working on will authorize “city councils,” which are planned to be established under the new scheme, to give business licenses to all sizes of retailers, from grocery stores to shopping malls.

The draft code aims at the prevention of a huge accumulation of malls or small stores in various areas and protection of small stores against big ones by not implementing inappropriate investment plans.

The authorization to give business licenses, which currently rests with municipalities, is planned to be given to city councils, in which there are representatives from the Environment and Urban Affairs Ministry and various chambers of commerce as well as municipalities.

These councils will decide whether a small grocery store, a hairdresser or a shopping mall should be built on a street according to a number of factors, such as the need for this store or mall in the street, its effect on street traffic etc.

The excessive accumulation of malls or small stores on one street or in an area is planned to be prevented, according to the draft code, which will clarify what a supermarket or a hypermarket is.

The councils would then allow the opening of a store or mall or recommend not opening it by presenting its arguments clearly. If an investor decides to launch the store despite the contrary recommendations, it could not benefit from tax incentives or discounted loans.