New Year’s shopping bolstering businesses in retail industy
ISTANBUL
Turkish retailers are enjoying strong demand as shoppers are rushing to stores and e-commerce platforms for gifts and accessories ahead of New Year’s celebrations.
Shoppers are buying all kinds of goods, flowers, chocolates, tech products as well as “experience products,” such as hotel bookings and tickets for foreign destinations, said Sinan Öncel, president of the United Brands Association (BMD).
This shopping spree will give a boost to the retail sector and to the entire economy, according to Öncel.
November and December are two crucial months for the retail industry, he said.
In November, which is sometimes dubbed “Legendary November,” companies offer large discounts for special occasions.
“November was good for businesses. We expect the same for December,” Öncel said.
Unit sales are projected to increase between 20 to 25 percent in December, he added.
Öncel thinks that some consumers will bring forward their shopping as they fear that prices could go up soon due to the expected increase in labor costs.
E-commerce platforms also see strong consumer traffic during November and December, said Hakan Çevikoğlu, the president of the Association of E-Commerce Operators (ETİD) and general manager of PttAVM.
Transaction volume is expected to hit 450 billion Turkish Liras in December, nearly doubling compared to the same month last year, according to Çevikoğlu.
New Year’s shopping will be the main driving force behind the surge in sales, he added.
Consumers buy mostly food products, sports goods, accessories as well as New Year-themed cups, sweaters, blankets, board games and hats, according to Çevikoğlu.
He noted that the e-commerce volume in Türkiye surged 115 percent in 2023 from the previous year to hit 1.85 trillion liras, while the number of transactions grew 22 to 5.87 billion units.
E-commerce volume and transactions are forecast to reach 3.4 billion liras and 6.67 billion, respectively, in 2024, he added.
In his earlier comments, Öncel from BMD said that retailers saw a 20 percent increase in their businesses in November, boosted by discounts throughout the month.
Unit sales declined in the July-October period by 30 to 40 percent on average but this trend reversed last month thanks to discounts offered by retailers, Öncel said.
Steps taken by the economic management designed to rein in inflation played a role in the contraction in demand during this period, according to Öncel.
