Turkish retail sector faces 'blood loss' as consumer spending shifts abroad

The Turkish retail sector is experiencing a "blood loss," according to Sinan Öncel, head of the Association of Turkish Brands (BMD). He described the current situation as dire, with a majority of member companies reporting revenue growth below 30% in May compared to the previous year.

“

The proportion of those who say this ratio is 16% and above was 20% in 2024, 42% in 2025, while it rose to 56% in the first four months of the year.

Öncel highlighted the unhealthy reliance on discounts, noting that over 56% of retailers have discount sales making up more than 40% of their total revenue. "More than half of the revenue coming from discount sales unprofitably is very unhealthy," he stated.

A critical shift in spending patterns is also evident. Öncel reported that spending by Turkish cardholders abroad increased by 50%, rising from 227 billion lira to 341 billion lira between January-April 2025 and January-April 2026. Conversely, spending by foreigners using foreign cards in Turkey decreased during the same period, falling from 284 billion lira to 229 billion lira.

“

The dollar equivalent of a 100,000 lira rent was $6,068 in June 2022, while today it is $11,164.

High rents remain a primary concern for retailers. Öncel recalled that the ideal rent-to-revenue ratio is 10%. However, the proportion of retailers reporting this ratio at 16% or higher has dramatically increased, from 20% in 2024 to 42% in 2025, and reaching 56% in the first four months of 2026. He illustrated the escalating cost by noting that the dollar equivalent of a 100,000 lira rent has nearly doubled from $6,068 in June 2022 to $11,164 currently.

“

More than half of the revenue coming from discount sales unprofitably is very unhealthy.