Turkey: Retail Foods
Fueled by increasing disposable income levels and a strong consumer demand, the Turkish food retail sector reached US$ 121 billion in 2014. The share of food in the total retail sector is 60 percent and the food retail sector is expected to grow 8 percent annually from 2015-2018. However, 2014 marked an increase in food prices due to a severe drought which was then followed by heavy rains in 2015. Discount chains continue to dominate the food retail sector. Private label products are increasing their share against branded products and the number of discount stores are still increasing at a fast pace. Meanwhile, as profit margins get smaller, some players are seeking growth via mergers and acquisitions, by increasing efficiency and cutting costs instead of opening new stores.
