Retail sector mulls discount campaign to fight inflation

ISTANBUL

The retail sector, which has seen an increase in both sales and volume in recent months, has called for an all-out discount campaign in the second half of the year to fight inflation.

The call was made by Sinan Öncel, president of the Unified Brands Association (BMD), who recalled that they had met with Trade Minister Ömer Bolat in recent days.

"We have had anti-inflation campaigns before,” Öncel said.

“This may not be easy with the increase in costs, but what really worries us is the decrease in demand. A campaign that we will launch with the participation of transporters, banks and shopping malls can create a 'legendary Friday' effect against inflation. This process should be carried out under the coordination of the ministries, as it has been done in recent years under the leadership of the public sector."

According to BMD data, there was a significant increase in both unit sales and revenue in June. Compared to the same period last year, 80 percent of BMD members reported an increase in sales.

Öncel emphasized that this should be sustainable.

"We think it is right to make a campaign to prevent any relaxation in demand, this is what we can do,” he said.

“The main reason for the increase in demand is people's behavior to buy things before their money loses value. Consumers are already buying the products they will need in the coming days. As for non-food products, we think it is necessary to continue with the right prices and campaigns in order to keep the demand from decreasing."

Öncel explained that everyone has benefited from similar campaigns in the past.

"Our companies that want to get rid of their old products can give higher discounts on these products,” he added.

“Currently, the price we set at the beginning of the season remains cheap at the end of the season in such an inflationary period. We say let's do it at the beginning of the season. Transporters, bankers and shopping malls should also get involved.”

Önder Özpamukçu, president of the Food Retailers Association (GPD), said campaigns are already underway.

"The whole sector is struggling to prevent food prices from rising further,” he said.

“It is still too early to comment, but if there is a separate campaign in which all sectors will participate, we will of course make an evaluation."

Berke İçten, president of the Turkish Association of Shoe Manufacturers (TASD), said the shoe industry was "on the side of the nation."

“Such a campaign would be very valuable at a time when the opening of schools is approaching. We are all in this together,” he noted.

However, the transportation sector is not warm to the idea of a major discount campaign.

Hakkı Başman, president of the Turkish Transporters' Association, said they were facing very serious costs with the increase in fuel prices.

"We have very serious losses. We do not decide our prices in the transport sector anyway, so it is not possible in our sector. Unfortunately, we cannot say yes to a campaign under these conditions.”