Retailer Request to Reopen Credit Faucets

While the retail sector expects the recovery of domestic demand to gain momentum from the sixth month of the year, with the elections behind; It requires a series of legal regulations such as VAT incentives for new stores and lifting the ban on credit card fees for cosmetic products.

The representatives of the sector want the credit faucets, paralyzed with the new economic management and financial stability, to open quickly.

Serhan Tınastepe, President of the Chain Stores Association (ZMD), who spoke at the Special Session of Presidents held within the framework of the “Joint Conferences 2023”, stated that the earthquake effect, macroeconomic imbalances and some steps in economic policy in the first half of the year negatively affected the recovery of domestic demand and said: “While we wait for monetary expansion, money went through a serious process in which supply was restricted.” Both before the elections and between the two elections, the supply of credit almost froze. These also negatively affected domestic demand,” he said, adding:

“The first five months of 2023 were neither very good nor bad. In the sixth month and second half of the year, the elections are over, there is a new management of the economy… We expect domestic demand to continue. We hope that measures will be taken to solve our sectoral problems”.

‘WE WANT INCREASE IN VAT’

Tınastepe affirmed that one of the problems of the sector is the solution of the implementation problems regarding the expenses of common areas with shopping centers and said: “We want VAT incentives for investments in new stores. As in industry and tourism. Foreign retailers still rent in foreign currency. Apart from this problem, there is a ban on cosmetic credit card fees. We hope that cosmetic purchases will be made in installments with a credit card, ”he said.

Kaya Demirer, president of the Association of Tourism Investors-Restaurants and Gastronomic Companies (TURYID), pointed out the need to support the financing demands of the sector.

Demirer said: “It matters to us that financial institutions that respond to our demands for loans turn the taps back on and give us opportunities,” Demirer said.

PROBLEMS MUST BE RESOLVED WITH RATIONAL POLICIES

Alp Önder Özpamukçu, president of the Association of Food Retailers (GPD), said that they hope that the problems of the sector will be solved with rational policies, together with the elimination of electoral uncertainty and new economic management.

Özpamukçu said: “It is extremely important that the electoral uncertainty is over. The announcement of the new cabinet also indicates that we will evolve towards a rational and problem-focused structure. In particular, the disappearance of electoral uncertainty indicates that the sector may also catch a period of growth”, adding:

“As food retailers, our priority is to bring supply chain security and food safety to better ground through good business management with planned structures on the agriculture and livestock side.”

Özpamukçu claimed that blaming food retailers for inflation led to a distraction from the true causes of the problem and delays in what should be done. Özpamukçu said that for the solution of the problem, it is necessary to focus on the basic issues related to production, starting with planned agriculture and scaled livestock.

The retail sector is about 2.5 trillion TL in size in Türkiye; 1 billion TL of this volume is carried out by the organized retail sector. More than 2.5 million people are employed in the organized retail sector. (Reuters)