Retailers convene complaints over malls to minister

ANKARA

The retailers’ association has convened its complaints regarding shopping centers to Trade Minister Mehmet Muş.
Board members of the United Brands’ Association (BMD) held a meeting with Muş and raised their concerns.

They complained that despite a directive from August shopping center refuse to share information on their revenues and costs.

“They declined to provide us with this information despite our repeated requests. We informed the [Trade] ministry of the situation and discussed the matter with the minister at a meeting on Dec. 16,” said Sinan Öncel, the president of the BMD.
The August directive aims to resolve conflicts between shopping centers and retailers operating at malls over common expenses and revenues.

Fines of up to 6 million Turkish Liras could be imposed on those who fail to comply with the directive, Öncel said. “But we do not want a conflict with our business partners nor want them to face such fines. What we want is have transparency as the directive stipulates.”

Shopping centers previously had voiced concerns over financial difficulties, Öncel added. “They claimed to have $12 billion in debts and banks could seize 50 to 60 shopping centers. But a week later, they changed the tone, saying a record number of people were visiting the malls.”

Shopping centers are having problems due to foreign currency loans they obtained in the past, said Hüseyin Altaş, the president of the Council of Shopping Centers (AYD), adding that they expect a record number of people to visit malls in 2022.

“We are not retailers. Their turnover increased by 200 percent, whereas shopping centers saw a 60 percent increase in their turnover. Rents [of stores at malls] were hiked between 15 to 20 percent in line with the 12-month average CPI, they were only increased by 70 percent in December,” he added.

Altaş dismissed claims that shopping centers are now providing the necessary information. “Our members comply with the directive. Only a few non-member shopping centers do not provide this information,” he said.