Retail sector expects surge in card spending during Eid al-Fitr holiday

ISTANBUL – Anadolu Agency

The United Brands Association (BMD) President Sinan Öncel said that card payments during the upcoming Eid al-Fitr holiday, including the eve of the holiday, are projected to reach 130 billion Turkish Liras ($3.4 billion).

In a written statement, Öncel highlighted that shopping in the branded retail sector is expected to peak on March 29, the eve of the holiday, providing a partial boost to categories such as groceries, clothing, footwear and dining.

Öncel noted that approximately 20 percent of card expenditures typically go toward grocery shopping.

"Clothing, footwear, and food and beverage are among the top three spending categories," he said. Drawing from past trends, he pointed out that spending surges on the eve of religious holidays, a pattern confirmed by data from the Interbank Card Center (BKM).

"Last year, during the four-day Ramadan Bayram, total card payments amounted to 94.1 billion liras [$2.5 billion], with 37 billion [$973.7 million] — or 39 percent — spent on the eve alone," he explained.

"This year, we anticipate a 40 percent increase, in line with annual inflation, bringing the total to 130 billion liras, with around 50 billion liras [$1.3 billion] of that occurring on March 29."

Meanwhile, Öncel addressed challenges in the branded retail sector, stating that unit sales contracted in the first two months of the year. He emphasized that seasonal upticks during religious holidays and special occasions offer temporary relief. To reverse this trend, he stressed the need for innovation in product development and cost reduction, noting that no other viable solutions exist to improve the sector’s outlook.