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Published On: Sun, Mar 8th, 2020

A brief review of food retail sector in Turkey and largest chains

Turkey is a developing country with a population of approximately 82 million. The major towns in the country have received a huge immigration for many years and the retail sector in big towns have substantially developed. For instance, food retailing is reported to have grown at an average annual rate of 13% between 2013 and 2015. Based on surveys at the end of 2015 it was found the total sales area of food retailing in Turkey had increased by 575 thousand square meters compared to the previous year and reached 5,181,000 square meters

On  the other hand it was also observed that sales continued to increase in line with the increase in available personal income. It is a fact that since the early 1990s, the share of organized retailing in food retailing has been increasing.

Traditional food retailers called grocery stores, BAKKAL in Turkish used to meet the whole food need of consumers until large markets and super markets started coming in and the consumers began to use their preference for these retailers.

Why are large retailers preferred by consumers?

Apart from the price advantages provided by organized retailers with the contribution of the economy of scale, the combination of food and non-food products in these stores also leads to the preference of the markets. On the other hand, another reason for the preference of markets is that they meet a higher level of customer satisfaction by placing more emphasis on quality and hygiene standards in the products offered than on non-organized channels.

Traditional retailers, on the other hand, are far away from supply management and modern marketing methods, causing them to work with low efficiency. Although the share of the traditional channel in food retailing has fallen in recent years, approximately 70% of the total food retailing market is still held by traditional outlets such as grocery stores, medium-and small-scale markets, buffets, greengrocers and butchers.

Among major chains MIGROS Group is the pioneering and leading retailer with below data:

Migros: Known to be the pioneer of the retail sector, Migros offers its stores in 81 provinces in 7 geographical regions. Migros meets the needs of its customers with its food and necessities categories such as cosmetics, stationery, glassware, electronics, books and textiles – Turnover, over TL 23,2 billion.

2104 stores (830 M-JET, 693 M, 388 MM, 137 MMM 56 5M in 81 provinces operating with an area of 2,366,910 m2.

Macrocenters: Turkey’s pre-eminent supermarket chain with its privileged product portfolio, high standards of customer service and special store design. Offering the most exclusive flavors of Europe and the world as well as the unique flavors of Anatolia, 59 stores in 6 provinces, 63.413 m2 area

Ramstore: Migros serves with a total of 45 stores in Kazakhstan and Macedonia. While introducing Turkish products to the world, Ramstore exports abroad. 45 stores in 2 Countries, 68.787 m2 area

BIM GROUP with more than 7500 retail points

BIM has a total of 7,440 stores throughout Turkey. The group made a TL 20 billion turnover in 2016 with a double digit growth rate

BIM continues to steadily increase the number of stores and turnover. BIM’s statement is “to continue development with an effective cost management policy without giving up on its quality approach and customer satisfaction priority”.

BIM continues its activities in Turkey as well as abroad. BIM opened 55 new stores in Morocco in 2019, reaching 497 stores. In Egypt, which has its second overseas operation, it has 320 stores by the end of 2019.

A-101: Convenience stores with 8500 retail points currently

A-101 has 8500 retail shops of with 1301 stores in Istanbul. Each of warehouses of the company has an area of 10 thousand square meters and approximately 1200 trucks are shipped from each warehouse every day. While its annual turnover was 285 million liras in 2010, this figure reached 14.2 billion liras in 2017 and increased to 20.1 billion liras in 2019. In the chain of markets where 1200 kinds of products are offered for sale, familiar brands with the least profit ratio are delivered to the customer at affordable prices.

As well as being the most common retail chain, A101 is among the pioneers of its industry with 54,000 employees and over 600 suppliers. A101 has carried its success beyond our borders as the fifth fastest growing retail company in the world.

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