Arnica: Rising Costs Threaten Profitability

Arnica Chairman Senur Akın Biçer on Bloomberg HT

The Chairman of Arnica, Senur Akın Biçer, was the guest of Arzu Maliki on the Upper Level program aired on Bloomberg HT. Biçer shared the challenges faced in the retail sector and their strategies for 2026.

Sectoral Growth and Challenges

Evaluating the current situation in the retail sector, Biçer stated that they are maintaining their presence in the sector. He noted that they achieved a 13 percent growth in both revenue and unit sales during the Black Friday week, emphasizing that the highest sales occurred in the vacuum cleaner category. Additionally, he mentioned that there are challenges in the white goods market.

Competition and Cost Pressures

Biçer highlighted that competition has increased, pointing out that the price advantages of Chinese products have provided a strong position in the market, but the lack of after-sales service has created a serious problem. He added that Arnica has developed a measurable and human-centered new system in marketing this year.

Rising Costs and Profitability Issues

Noting that production costs have risen rapidly, Biçer stated that there have been increases of up to 50 percent in labor costs for some products. He expressed that the cost pressures related to currency exchange rates have pushed prices up, stating, “We cannot pass all of the rising costs on to prices. This reduces profitability.”

Supply Chain and Investment Challenges

Biçer indicated that the year 2025 was challenging in terms of the supply chain, emphasizing the vital importance of keeping suppliers afloat. He stated, “If suppliers withdraw from the market, companies need to make the same investment.”

Future Vision: 2026 Expectations

Biçer pointed out that the cost of money is one of the major challenges in the sector and that a significant portion of profitability goes towards financing expenses. He foresees that the first half of 2026 will be difficult, but expressed optimism for the second half of the year, expecting improvements in financing conditions and aiming to launch new products.