ERGIN – Retailers brave dollar’s rise, see overseas expansion

Retailers brave dollar’s rise, see overseas expansionA leading Turkish retailersand#39 union has set an ambitious goal of opening 800 new sales points in foreign markets this year even though the depreciation of the euro and other currencies against the US dollar has weakened the bargaining power of foreign buyers and increased production costs at home.The ongoing shift in eurodollar parity has had the strongest negative effect on the export performance of Turkish retailers, since they pay for imported raw material in US dollars and accept euros for the end-products they sell abroad.

andldquoThe euro has lost nearly 30 percent against the US dollar recently, and we are affected by this. andhellip Turkish retailers, however, are determined to expand their presence in nearby and distant markets this year,andrdquo Turkeyand#39s United Brands Association (BMD) President Sami Kariyo told Todayand#39s Zaman in Istanbul on Thursday.

In total, BMD retailer brands — excluding food — had 2,951 sales points overseas in 2014. Kariyo said this number is expected to increase to 3,750 by the end of 2015.

Union members are aiming to reach $45 billion in turnover and increase the number of personnel at home and abroad to 315,000 this year Overall, Turkish textile and ready-to-wear brand exports hit $3.2 billion in 2014.

As he confirmed that the decline in the eurodollar market threatened to hurt Turkish retailersand#39 competitive power in regional markets, Kariyo said they will work harder to overcome difficulties in input costs, pricing and profits.Turkish trade involving the euro looks set to experience a decline in profits, as the European Central Bankand#39s monetary expansion policy will remain in place until at least the fall quarter of 2016 as the loosening in parity between the euro and dollar continues.

Currently, Africa and the Americas are the two markets where BMD members have the weakest market share among other world markets. Turkish textile brand Mudo board member mer TaviloIlu and leading jeans producer Mavi CEO Cuneyt Yavuz told Todayand#39s Zaman on Thursday that BMD members have sought to branch out into Uganda, Chile, Brazil and Mexico this year.

SOURCE: Today’s Zaman