Strong Growth Expected In MGR
Turkey's food retail industry is one of the emerging world's most exciting, and we expect a lot of growth over the next few years, especially in discount food retailing. Tremendous expansion by soft discounter BIM has demonstrated the level of growth that is attainable in Turkey, where a large proportion of the population continues to shop at informal kiosks. This view is well reflected by our forecasts for Turkey ' s mass grocery retail sector. Over our forecast period to 2017, BMI sees headline mass grocery retail sales growing at a compound annual rate of 12.3%.
|One Of The Fastest Growing In Europe|
|Turkey - Total Mass Grocery Retail Sales (TRYbn)|
After Russia, Turkey is , in our view, the outstanding food retail opportunity Europe has to offer given its size, strong long-term economic outlook and the fact that there is a lot of room for retail to grow. Unlike Russia, a number of Western European retailers have managed to establish themselves in Turkey and are well positioned to grow strongly over the next few years given our fundamentally positive outlook. Give that informal independent stores still account for the majority of food sales, the trade up to organised food retailing forms the backbone of our long-term view on Turkish retail.