Retailers prepare for the walk

The president of the United Brands Association (BMD), one of the umbrella organizations of the organized retail industry, Sinan Öncel stated that they achieved a significant jump in both unit sales and turnover in June with the effect of “escape from money” and the holiday. in the inflationary environment; He said that they expect the vitality of purchases to continue in July with the contribution of foreigners.

On the other hand, Önel pointed to the significant increases in labor and fuel costs in July, stating that they will inevitably face price increases due to both cost and demand inflation.

INCREASE CONCERN EXPLOITED SALES

Affirming that “prices will rise further” and the realization that “the field is profitable today,” the trend of “escape from money” continues to rise in consumers, Öncel said, “The consumer accumulates stock products to the extent of In an inflationary environment, the opportunity to pay in installments for up to a year in cash also increases the attractiveness of purchases.”

Noting that the retail sector is experiencing one of the busiest periods with the effect of consumers resorting to shopping instead of saving, Öncel said the sector peaked in June with the holiday effect.

Önl said: “There has been an upward chart in unit sales for the last three months. When we look at June, we see an increase in sales for 80 percent of our member brands. On an annual scale, we can speak of an increase of 10 to 25 percent on average. There is a major increase in unit sales from the previous month, meaning May,” he said, adding:

“We believe that the vitality in purchases will continue to increase with the contribution of foreigners as of July.”

‘THE PRICE INCREASE IS ESSENTIAL’

On the other hand, Öncel emphasized that the current landscape looks bright in terms of organized retail at first glance, but the fact that the event has turned into a vicious circle worries the industry.

Noting the demand inflation in the market, Öncel said: “There were significant increases in fuel and labor costs in July. The increase in fuel will increase our costs, especially in e-commerce operations. Therefore, in addition to demand inflation, we will inevitably face price increases due to costs. We need to break this vicious circle somehow,” he said.

With the strong increase in the special consumption tax (SCT) on fuels, the pump price increased more than 20 percent this weekend, while economists expect a strong rebound in the CPI in July and August. (Reuters)