The opening of 20,000 new markets is expected in 7 years

According to the Ortakalan Retail Report, which was announced within the framework of the “Ortakakıl Conferences 2023” organized for the organized food retail sector, the total number of markets in organized food retail, which was 43,659 at the beginning of 2022, increased to 48,660 at the end of the year, with the opening of 5,011 new markets last year. Consequently, the rate of increase was approximately 12 percent.

While 5 thousand 1 new markets were opened last year, mainly discount markets, in Turkey, more than 20 thousand new markets are expected to open in seven years, which is expressed as the medium term, and the growth in the physical retail continue.

In this process, a significant part of the growth is expected to come from the discount markets (discount) and this segment will have a 77 percent share of the total markets.

THE GROWTH ENGINE OF DISCOUNT MARKETS

The locomotive of physical growth experienced by food retail last year was discount markets, which opened 3,609 new stores. The total number of discount markets, which was 34,513 at the beginning of 2022, increased 10.5 percent to 38,122 at the end of the year.

In the last year, the total number of branches of market chains nationwide increased by 31% year-on-year with 1,451 new openings. The opening of approximately 940 new branches last year by Tarım Kredi Market played an important role in the growth of market chains nationwide.

According to Ortakalan data, the total number of grocery stores in food retail trade increased to 48,660 by the end of 2022. This number was 13,908 by the end of 2012. Consequently, there has been an increase of 34,752 in the number of branches of markets organized in chain in the last 10 years.

Although the participation of the discount markets in the sector has increased from 60 percent to 78 percent in the last 10 years; Faced with the attack of discount markets, the participation of local chains decreased from 23 percent to 9 percent.

The participation of national chains in the total number of markets has decreased from 17 percent to 13 percent in the last 10 years.

A GROWTH OF 40 PERCENT IS PROJECTED IN 7 YEARS

According to the report, although food retail is expected to develop into discount and supermarket concepts in the physical environment in the coming period; By the end of 2029, domestic markets are expected to increase their share from 13 to 15 percent.

Stating that they foresee more than 20,000 new openings and 40 percent growth in market chains in the next 7 years, which they see as a medium term, Ortakalan editor-in-chief Emre Durdu said they expect at least 25 local retailers are included in the definition of a market chain, increasing the number of branches in this process.

Durdu, for his part, stated that they expect some 55 supermarket chains to leave the sector in the next 7 years, due to factors such as acquisitions or closures.

According to the report, as of 2012, a total of 102 market chains, 87 local, 8 national, and 7 discount, have already left the sector by selling or closing their branches. (Reuters)