Unable to keep prices constant
While the new stage in Turkey’s unorthodox economic policy of fighting inflation with its low interest rate policy is the demand for price reduction support from the retail sector, the sustainability and ultimate impact of these steps on inflation remain a question mark.
DIFFICULT IN THIS PERIOD
The Chairman of the Turkish Union of Chambers and Commodity Exchanges (TOBB) Assembly of Garment and Ready-Made Sector, Şeref Fayat, stated that after the traditional discount period in January, price reductions do not seem possible in the new season. Fayat said: “Unfortunately, it is not possible to keep prices constant while talking about raising the minimum wage, retirement age (EYT) and adequate loans for merchants, in the first half of the year when we enter the election campaign, in a period of monetary expansion at all levels”.
Nureddin Nebati, Minister of Finance and Finance, called for discounts in the clothing and footwear sectors after food retailers. Representatives of the retail sector pointed out that the continuation of the pricing and discount campaigns in the coming months depends on factors such as the exchange rate and the costs of inputs. Şeref Fayat, who stated that price increases that manufacturers were unable to do before, will be made with the start of postponed purchases, said: “January is already a discount month for the clothing industry. However, starting in February, I expect a garment sector that will start to contribute negatively to inflation, let alone a discount, in the low and medium price groups, as wage increases trigger delayed purchases.”
Seref Fayat
‘The cost should go down because of the discount’
Berke İçten, Chairman of the Footwear Manufacturers Association, said that the ready-made clothing and footwear industry does not reflect cost increases in prices, and input costs need to be lowered to get more discounts. İçten said: “There is an increase in the minimum wage and energy costs. While commodity prices are declining around the world, our raw material procurement prices are unfortunately not declining at this rate.” United Brands Association President Sinan Öncel also said that prices may show an upward trend from April due to cost increases related to summer products.