Astonishing growth of the Turkish economy, which had managed to reach an average growth rate slightly more than 5%, during the last ten years have created a dynamic retail sector especially by increasing the disposable income which stands at USD$ 7700 per capita. Especially the well known brands operating in the retail sector have increasingly found themselves inside the growing number of shopping malls. During the course of the last decade Turkey had experinced a boom in the number of shopping malls.
Growing Number of Shopping Malls
In 2003 the country had only have 62 shopping malls, today the number have increased more than fivefold to reach 315. The total area available for rent inside the shopping malls is currently 8.7 million square meters. The total area available for rent inside the shopping malls is expected to exceed 13 million square meters in 2015. Especially The transactional volume had reached unprecedented levels especially in the hypermarket type shopping malls. The estimated transactional volume for the shopping malls for the year 2013 is USD$ 60 billion. The expectation for the transaction volume for the year 2014 is USD$ 75 billion. Currently 54 Turkish cities have shopping malls and by the year 2015, 60 Turkish cities are expected to have shopping malls. As of 2013 the transaction volume per a meter square available for rent reached 549 Turkish liras. For the shopping malls in Istanbul it stands at 650 Turkish liras.
Expected New Regulation
The new regulation is expected to solve the problem of legal definition. In the retail business there are several different terms employed most of the time to define the same thing. The application and the usage of the terms like shopping mall, big store, chain stores, franchise and branch are problematic. The first thing to be done should be to solve this conflicting, overlapping and confusing usage of these terms. In addition to the problem of legal definition, one of the most desired legal regulations on the part of the retailers is the easing of establishing business and especially the reduction of bureaucratic procedures in this regard. Especially the problem of dealing with several bodies to obtain the necessary permits to establish a retail business should be dealt with.
However the draft legislation prepared by the Ministry of Trade and Customs, especially deals with this issue of easing the establishment of the business as well as addressing the issue of legal definition. The draft regulation includes the establishment of a new system called Retail Information System (PERBİS). Upon the establishment of this body the would be retailers will not need to apply to different institutions for the permissions of establishment and will only deal with this new body that will issue the permits. This new system will also regulate the promotional campaigns carried out by the retailers. The duration of such campaigns will be determined and all the information pertaining to such promotional campaigns will be available on the PERBİS web site for the consumers to track.