Distribution Networks in Turkey
B2B Distribution (2) , Franchising (0) , Internet Sales and Mail Order (0) , Retail Chains (0) , Trading Companies (1)
Overview by Globlatrade.net:
Types of Outlet
- Located on the outskirts of towns. They sell foodstuffs and non food products.
- Located on the outskirts of towns but also in the center of some new residential districts and sometimes in old districts.
- Specialized Hypermarkets
- Hypermarkets specialized in one family of products.
DIY: Praktiker / Bauhaus / Koçtas / Tekzen
Household appliances: Darty / TeknoSA / Vatan
Interior and furniture: IKEA / Tepe Home
- Mainly for food. They sell products of the distributor's own brand or no brand at all.
- Small local stores in direct competition with local grocer's shops.
- Small shops
- Specialized traditional local shops (grocer's, butcher's, fishmonger's, greengrocer's, cheese shops, delicatessens, baker's, cake shops, and florist's).
- Popular, ancestral place to buy mainly fruit and vegetables. The prices are very attractive.
- Cash and Carry
- Hypermarkets reserved for professionals.
- Department stores
- Located in the town center and in shopping malls, on several floors. They have various specialized departments.
Evolution of the Retail Sector
- Growth and Regulation
- Modern distribution has seen sustained growth since 1990, especially in hard discount. For all that, its level of development still remains limited if you compare with its market share in the European Union countries. On a foodstuff distribution market estimated at 72.3 billion USD, the share of modern structures was only 33% in 2005.
The still relatively low importance of mass marketing had not needed, until now, the setting up of specific legislation on the development of hypermarkets. The Turkish government submitted in 2005 to the Great National Assembly a bill still under discussion making it necessary to have an authorization to open a hypermarket. Another aspect of the law (which risks being challenged) will prohibit the opening of hypermarkets on Sundays and public holidays.
- Market Shares
- The distribution sector is characterized by its high fragmentation and its low diversification. At the present time, a profound process of change is taking place, with the appearance, especially in Istanbul, of big distributors and large shopping malls, and the development of new structures integrated on a national scale.
In spite of these changes, the distribution system remains very complex, with many intermediaries. Retail sales of staple goods (food, personal hygiene, cleaning) remain concentrated essentially in about 170 000 small family structures. The surface areas of more than 100 m2 are only responsible for 20% of total sales.
The great importance of small retail establishments can be explained by the sheer size of the country and the difficult access to certain areas, a limited number of vehicles on the road, and the application of a system of credit-confidence with the local shopkeeper.
- Organizations in the Retail Sector
Turkish Council of Shopping Centers and Retailers
Turkish Federation of Retailers
Retailers Council of Istanbul
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