Türkiye’s major retail chains have announced successive discount campaigns after calls by President Recep Tayyip Erdoğan and Trade Minister Ömer Bolat to back a collaborative effort to alleviate the burden on consumers and curb the rising costs of living amid stubbornly high inflation.
Bolat last week said they "expect a substantial discount campaign from all markets in the 100th year of our republic" before expanding his call on Tuesday to cover other players of the retail industries, including textile and home appliances.
Erdoğan reiterated the importance of the effort during Monday's Cabinet meeting, urging all businesses, especially chain markets, to contribute to the fight against inflation, which surged to more than 61% in September and is expected to rise further toward the end of the year.
"I invite all our businesses, especially our chain markets, to support our fight against inflation and the cost of living with the discounts they will make," he said.
Türkiye’s food retail market had a total value of TL 1.6 trillion ($58 billion) as of the end of 2022, according to data from the Food Retailers Association (GPD), with organized retail channels, including supermarkets, having a size of TL 550 billion.
Türkiye’s biggest supermarket chains and retail giants swiftly responded to the government’s call, promising significant discounts on various products.
BIM announced reductions of up to 50% on 500 items throughout October. The company emphasized its commitment to supporting the nation's battle against inflation while ensuring consumers' access to essential goods without a price hike.
Migros said it aims to enhance consumers’ purchasing power by unveiling plans to offer discounts ranging from 20% to 50% on over 15,000 products from Oct. 12 through the end of November.
Yeni Mağazacılık, known as A101, said it made a minimum of 50% discounts on at least 1,000 products daily throughout the year and pledged regular price reductions in all categories to support efforts to curb inflation.
Şok Marketler joined the campaign by announcing an initiative to slash prices on 1,000 products by up to 50% throughout October to contribute to the nationwide effort.
Meanwhile, Alp Önder Özpamukçu, head of the Food Retailers Association (GPD), emphasized the need for a comprehensive approach.
He stressed that while retailers are willing to participate, the fight against inflation and price stability requires the collective efforts of all players in the supply chain, including suppliers and producers.
Özpamukçu highlighted the challenges faced by the sector, which he said was operating with a very low net profitability of 2%-3.5%, and emphasized the indispensable role of support from suppliers in this effort.
On Tuesday, United Brands Association (BMD) President Sinan Uncle said 505 member companies were expected to join the campaign with 60,000 stores nationwide.
Öncel recalled that BMD brands had participated in a similar effort back in 2018. "I predict that our brands will respond to the call with the same enthusiasm once again to break expectations of rising inflation," he told Anadolu Agency (AA).
To ensure the longevity and effectiveness of the campaign, Öncel emphasized the necessity of involving all stakeholders, not just retailers. He noted that everyone, from logistics providers, store owners and mall operators to those providing credit and leasing services, needs to participate.
"Retailers cannot bear this burden for an extended period alone. If every sector joins the fight against inflation with the same enthusiasm, it will be a long-term effort and a national consensus," he said.
Öncel anticipated discounts ranging from 10% to 30% across various sectors, adjusted according to each industry's dynamics. He also observed that many retailers are considering extending these discounts until the end of the year, provided that cost increases, especially in raw materials and energy, do not pose obstacles.
He also spoke about the potential impact of the campaign on sales, suggesting that if communicated effectively, retailers could achieve a 20% to 30% increase in sales volume in October and November.
Furniture makers freeze prices
The effort was joined by furniture makers, who announced they would freeze prices until the end of the year on Wednesday.
The Furniture Associations Federation (MOSFED) chair, Ahmet Güleç, announced that 15 member associations unanimously decided not to increase retail prices in all furniture categories until the end of 2023.
The industry has over 45,000 producers, 50,000 stores and nearly 500,000 employees. Underlining that 80% of the furniture industry is domestically produced, Güleç said the sector was ready to take any responsibility to back Türkiye’s development.
"We believe that this decision to support anti-inflation and anti-cost of living policies will alleviate the burden on individuals planning weddings or considering home renovations," he said.