November 2023: The Legendary Expectation Did Not Come True

Trend Starting in October Shook in November

November 2023 drew attention with a decrease in revenue and unit sales, despite offering expected large discount opportunities in the retail sector. Especially in the ready-to-wear and shoe sectors, this month became one of the three months with the lowest transaction numbers of the year.

Statements from the Union of Brands

The President of the Union of Brands (BMD) Sinan Öncel stated that they observed significant changes in shopping behaviors this November. Öncel said, "With the arrival of colder weather and the early start of discounts, a significant increase in revenue was recorded in October. However, surveys conducted in November reveal that revenues remained below inflation. 41% of our members struggled to increase unit sales," he said.

Differences Between October and November

Based on data from the Central Bank, it was observed that both transaction numbers and revenues in November were far behind October. In the categories of clothing, shoes, health, cosmetics, and food, card expenditures in October amounted to 410 billion lira, while this figure dropped to 333 billion lira in November. The number of transactions decreased from 452.6 million to 363 million. This means that in November, revenue decreased by 18.8% and the number of transactions fell by 19.8%.

Challenges in the Retail Sector

Sinan Öncel also evaluated the primary issues faced by the retail sector. At the top of the list are exorbitant rent increases; 83% of members complained about this situation. The decrease in tourist shopping ranks second at 64%, and the rise in labor costs is third at 60%. Öncel emphasized that reducing costs will be the most critical issue in the sector by 2026.

Attention to Exorbitant Rent Increases!

Öncel added, "Exorbitant rent increases are a significant problem for tenants. Therefore, the right of property owners to terminate contracts without cause must be abolished. Otherwise, this situation threatens the sustainability of our brands."

Future Measures

Öncel stressed the need to eliminate additional customs duties on raw material and intermediate goods imports and emphasized the importance of implementing quick measures to support the sector.