Metro to expand Turkish market

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Metro to expand Turkish market

Germany's Metro Group plans to invest approximately €100 billion by opening 10 large stores in Turkey. Executive Board President Eckhard Cordes said Metro considered Turkey a country with great opportunities, recording a very rapid growth rate and having an attractive economy. Cordes commented, "Turkey presents very important exports opportunities."

Cordes will be meeting with Turkish Prime Minister Recep Tayyip Erdogan, to review rules of modern trade related to the hypermarket law. Cordes said Metro was planning to open 6 Media Markets, 2 Real hypermarkets and 2 Metro Cash & Carry shops in Turkey.

Hypermarkets have recently become fashionable investments within the retailing sector in Turkey.  Sabanci, Koc and Dogus – three major conglomerates in Turkey – are heavily involved in this sector.  There are about 50 different chains operating in the Turkish retail business. Foreign investors present in the Turkish retail market prefer to form joint ventures with Turkish companies, as seen with Carrefour SA (France) and Sabanci JV, Bookers (UK) and Sezginler JV.

Large western-style retail outlets have started to flourish in Istanbul, Ankara and Izmir, and other large cities such as Adana, Gaziantep, Bursa, Kocaeli, Konya and Mersin.  Here consumers are more aware of international trends, have higher disposable incomes, and have automobiles to reach large warehouse-sized stores.  Middle and upper-middle income shoppers are drawn to these larger stores, especially if they provide imported and specialty items, previously only available at small specialty shops or acquired when travelling abroad.
Turkey: Torn between tradition and modernisation
With its population of some 70 million, and a growing economy, Turkey is an interesting market for local and foreign retailers. Retail is modernising rapidly but high prices, tariffs, slotting fees and inequality in income levels, are slowing down this process. Consolidation and reform might further stimulate Turkey’s retail sector.
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Published 27-03-2008 (10:45) by Karen Willoughby

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