turkey country report

TURKEY COUNTRY REPORT

CONTENT

INDICATORS OF RETAIL

MACROECONOMIC INDICATORS of TURKEY

EXPORT AND FOREIGN TRADE in TURKEY

TAX RATES in TURKEY

MACROECONOMIC INDICATORS of RETAIL

SHOPPING CENTERS SECTOR IN TURKEY

AMPD RETAIL INDEX by NIELSEN

DEMOGRAPHIC INDICATORS of TURKEY

DEMOGRAPHIC INDICATORS FOR RETAIL

INCOME DISTRIBUTION OF THE POPULATION

INCOME DISTRIBUTION & FMCG EXPENDITURE



TOTAL TURNOVER IN 2010: $171 BILLION; 75 BILLION IN ORGANIZED RETAIL

SALES AREAS HAVE REACHED 23 MILLION SQUARE METER

1,8 MILLION EMPLOYEES IN TOTAL IN 2010, 520.000 EMPLOYEES IN ORGANIZED RETAIL

NUMBER 7 RETAIL SECTOR IN EUROPE,

NUMBER 10 RETAIL SECTOR IN THE WORLD

NUMBER 5 IN FOOD SPENDING,

NUMBER 8 IN NON-FOOD SPENDING IN EUROPE

Sources:TCSCR, Cushman& WakefIeld and DeloItte Reports.



2006 2007 2008 2009 2010

GDP (BILLION USD)

526

648

742 616735

GDP PER CAPITA (USD)

7.586

9.240

10.438

8.55910.079

GDP PER CAPITA

(USD -PPP)

11.588

13.023

13.998

12.400 15.392

ANNUAL GROWTH RATE

6,9

4,7 0,7 -4.8 8,9 Source: TURKSTAT

EXPECTED 5.6% GROWTH BETWEEN 2005–2050;

2005-2008: 13% REAL GROWTH in GDP

:-4,8% REAL GROWTH in 2009, 8,9% in 2010

By 2017: EXPECTED TO HAVE THIRD HIGHEST GROWTH RATE AFTER CHINA AND INDIA (OECD)

SERVICES SECTOR ACCOUNT FOR 60% OF TOTAL ECONOMY

RETAIL TRADE CONSTITUTES 20-22% OF TOTAL GDP AND ORGANIZED RETAIL REPRESENTS 9-10% OF TOTAL GDP.

RETAIL SECTOR EMPLOYMENT CONSTITUTES %8-10 OF TOTAL EMPLOYMENT IN TURKEY WHEREAS SHARE OF ORGANIZED RETAILING IS 2,1%.

2015 TARGET IN ORGANIZED RETAIL EMPLOYMENT IS 900.000 PEOPLE


2010 OUTCOMES AND FORECASTS FOR 2011

GDP GROWTH RATE: GDP PER CAPITA(PPP ADJUSTED):

2010 8,9 % 2010 15.392 USD

2011 4,5 % 2011 16.126 USD

2012 5 %2013 5,5 %

UNEMPLOYMENT RATE:2010 11,9%2011 11,0 %

ANNUAL CPI GROWTH RATE:2010 7,5 %2011 5,3 %2012 5,0 %2013 4,9 %


FOREIGN DIRECT INVESTMENT: 1.2 % OF GNP in 2009

$7,84 BILLION NET TOTAL FOREIGN DIRECT INVESTMENT in 2009

TOTAL FDI IN 2004-2009: 81,2 BILLION USD

2005 2006 2007 2008 2009 2010

Net Total FDI (Million USD)

10.031 20.185 22.047 18.269 7.849 5.884

Annual Growth Rate (%) 260% 101% 9% -17% -57% -18%

Wholesale and Retail Trade (Million USD)

68

1.166

165

2.084 404 276

Turkey is one of the largest sources of FDI in Central and Eastern Europe and the CIS; more than $1.5 billion invested in these countries


EXPORTS & FOREIGN TRADE in TURKEY

MANUFACTURING INDUSTRY CONSISTS %93,4 OF TOTAL EXPORTS OF TURKEY

1ST IN CEMENT EXPORT IN THE WORLD2ND IN JEWELRY EXPORT IN THE WORLD2ND LARGEST GLASS PRODUCER IN THE WORLD

TRADE WITH EU: TURKEY is EU’s 7th TRADE PARTNERTURKEY IS EUROPE’S:

• 1ST MAKER OF TV, DVD PLAYER, BUSES• 2ND BIGGEST COMMERCIAL VEHICAL AND CEMENT MANUFACTURER• 3RD BIGGEST PRODUCER OF STEEL AND CERAMIC TILES

TURKEY IS:EU’s 2ND LARGEST TEXTILES SUPPLIEREU’S 3RD LARGEST MOTOR VEHICLE SUPPLIER

TURKEY IS A NET EXPORTER OF FOOD PRODUCTS AND BEVERAGES

TURKEY'S AGRICULTURAL PRODUCTION IS EQUIVALENT TO 40% AND 20% OF EU-25 PRODUCTION OF FRUITS AND VEGETABLES RESPECTIVELY.

TURKEY HAS AN AGRICULTURAL AREA EQUIVALENT OF 23% OF THE EU-25

TURKEY HOSTS 75% OF ALL PLANT SPECIES IN EUROPE

EXPORTS & FOREIGN TRADE in TURKEY

VALUE-ADDED TAX (VAT)

1% VAT FOR: Grain (wheat, oat, rye), dry fruit

8% VAT FOR: Meat (red meat, chicken, fısh), dairy and animal products Vegetables, fruits, coffee, tea, cacao, cereal, seeds, flour Vegetable oil, animal fat, butter Pastry, soft drinks, liquor Accessories (bag, shoes) and textiles Electronics, furniture, real estate

18% VAT FOR: Other goods and services

TAX RATES IN TURKEY

PRIVATE CONSUMPTION TAX (PCT)

6.7% PCT FOR: White goods, cameras, DVDs

20% PCT FOR: Cosmetics and beauty products, products made of crystal and pearl, ceramic kitchen goods

275,6% PCT FOR: Wine, sprinkled wine, liquor wıth less than 18% alcohol, liquor

with more than 22% alcohol, fermented liquor, vodka, rakı

TAX RATES IN TURKEY


SHOPPING CENTERS: NUMBER & GLA2009 236 5,7 MILLION M22010 263 6,5 MILLION M22011 318 (EXPECTED)8,1 MILLION M22013 350 (EXPECTED)

ORGANIZED RETAIL REVENUE: TOTAL RETAIL REVENUE:2009 72 BILLION USD 148 BILLION USD2010 75 BILLION USD (4% GROWTH) 171 BILLION USD

ORGANIZED RETAIL EMPLOYMENT: TOTAL RETAIL EMPLOYMENT:2009 450.000 1.81 MILLION2010 520.000 (15% GROWTH) 1.83 MILLION (EXPECTED) 2011 600.000 (16% GROWTH) 1.85 MILLION (EXPECTED)

ORGANIZED RETAIL STORES:2009 ON AVERAGE, 13 NEW STORES EVERY DAY (40.000 SALES

POINTS)2010 ON AVERAGE, 20 NEW STORES EVERY DAY (48.000 SALES

POINTS)



ORGANIZED FOOD RETAIL REVENUE:2009 31 BILLION USD2010 32 BILLION USD (2% GROWTH)

ORGANIZED NON-FOOD RETAIL REVENUE :2009 41 BILLION USD 2010 43 BILLION USD (8% GROWTH)

ORGANIZED FOOD RETAIL EMPLOYMENT:2009 53.0002010 60.000 (10% GROWTH)

ORGANIZED NON-FOOD RETAIL EMPLOYMENT 2009 397.0002010 460.000 (16% GROWTH)



Source: JLL

85

90

95

100

105

110

115

120

Kasım 08 Aralık 08 Ocak 09

AM

PD

Fiş

Baş

ına

Cir

o

En

dek

si

48505254565860626466

CN

BC

-e T

üke

tici

Gü

ven

E

nd

eksi

AMPD Fiş Başına Ciro CNBC-E Tüketici Güven

85

90

95

100

105

110

115

Kas.08 Ara.08 Oca.09

AM

PD

Fiş

Ba

şın

a C

iro

En

de

ks

i

Gıda Gıda dışı


REVENUES:48 BILLION USD in 200610 % GROWTH in 2007, 7% GROWTH in 2008, 8% GROWTH in 2009

REACHING 75 BILLION USD in 2010

EMPLOYMENT:300 000 EMPLOYEES in 2006 24 % GROWTH in 2007, 10% GROWTH in 2008, 10% GROWTH in 2009

REACHING 520,000 EMPLOYEES in 2010

TOTAL SALES AREA:12 MILLION SQUAREMETERS in 200625 % GROWTH in 2007 , 19% GROWTH in 2008; %14 GROWTH in 2009

REACHING 23 MILLION SQUAREMETERS in 2010

ORGANIZED FOOD RETAIL in 2010

REVENUE: 2% ANNUAL GROWTH

EMPLOYMENT: 10% ANNUAL GROWTH

SALES AREA: 14% ANNUAL GROWTH

STORES: 25% ANNUAL GROWTH


ORGANIZED NON-FOOD RETAIL in 2010






ORGANIZED APPAREL RETAIL in 2010






YOUNG AND HIGH POPULATION

73 MILLION POPULATION 15-64 YEARS 67% 0-14 YEARS 26% 0-25 YEARS 44% AVERAGE AGE: 28,5

SECOND LARGEST POPULATION in EUROPE

YOUNGEST POPULATION in EUROPE

WITH 24,7 MILLION PEOPLE IN LABOUR FORCE, 4TH LARGEST LABOUR MARKET IN EUROPE

EVERY YEAR: 730.000 GRADUATES FROM HIGH SCHOOLS,

450.000 GRADUATES FROM 143 UNIVERSITIES

DEMOGRAPHIC INDICATORS of TURKEY

Source: TurkStat

60% OF THE SHOPPING CENTER VISITORS ARE BELOW 30 YEARS OF AGE.

SHOPPERS INDEX: SHOPPER INDEX REFLECTS THE FREQUENCY OF THE ACT OF SHOPPING FROM ANY OF SELECTED CATEGORY OF GOODS (APPAREL, FMSCG, TEXTILE, RESTAURANT, ELECTRONICS ETC.)

AVERAGE SHOPPER INDEX FOR TURKEY :34

SHOPPER INDEX FOR 15-24 YEARS: 38

AVERAGE SPENDING: 41 TL

AGE GROUP 25-34: 53 TL

DEMOGRAPHIC INDICATORS FOR RETAIL

Source: IPSOS- KMG

2008 Total private consumption expenditure : 534 Billion USD

Graph: 2008 annual disposable average income by deciles (USD)

INCOME DISTRIBUTION OF THE POPULATION

ANNUAL DISPOSABLE INCOME DISTRIBUTION IN TURKEY 2008

20.251

15.567 12.773 10.730 9.117 7.661 6.337 5.027

3.207

38.186

-

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

45.000

1st %10 2nd %10 3rd %10 4th %10 5th %10 6th %10 7th %10 8th %10 9th %10 10th %10

Source: TurkStat



6,2% 13,5%10,9%

16,6%15,7%

19,2%22,1%

22,7%

45,1%28,1%

Income Distribution FMCG Expenditure

Upper

Upper-Middle

Middle

Lower-Middle

Lower

Source: Nielsen

THANK YOU

turkey country report

Documents

total gdp

gdp growth rate

total employment

total economyretail

annual growth rate

retail sector employment

organized retail employment

highest growth rate