We round up the results from Turkish retailers for the first half of 2016, including performance and highlights from BIM, Migros, Bizim Toptan, Adese and Uyum. Despite the continued growth of most retailers, some face profitability challenges.
Migros growth overtakes BIM...
In 2015, BIM grew faster than Migros; although for the first half of 2016, performance tells a different story:
In the first of of 2016, Migros' sales grew by 16.2% to TRY 5.1bn (€1.5bn), although net losses continued, with Migros reporting a net loss of TRY 113.9m (€33.8m). Migros opened 142 stores in the first half, most of which in Turkey, bringing its store count to 1,528 stores.
Highlights in 2016 included the launch of Migros' supermarket yacht and an agreement to acquire the majority of shares in Tesco Kipa, comprising 26 shopping malls and 168 stores.
For discounter BIM, net sales increased by 15.8% to TRY 9.8bn (€2.9bn), while net income increased by 12% to TRY 305.9m (€91.6bn). Like-for-like sales per store per day increased by 5.9%, while like-for-like baskets grew by 8.7%. However like-for-like customer traffic per store per day decreased by 2.6%.
BIM continued to open stores at pace, launching 402 new Turkish stores in the first half of 2015. Only one large format FILE discount store opened in the second quarter, although the retailer plans to increase its pace of FILE store openings in the second half of the year.
...Although BIM disappoints in Morocco & Egypt
BIM also launched 30 stores in Morocco, with the retailer acknowledging that sales have been 'lower than expected, unlikely to break even this year'. In Egypt, BIM launched 41 stores, with sales slower than expected, although store openings are on track.
Elsewhere in Turkey...
Wholesaler Bizim Toptan reported that turnover in the first half increased by 13.8% to TRY 1348.9m (€403.8m). Net income increased by 78.6% to TRY 7.1m (€2.2m). Key categories drove growth, as did the sale of tobacco, while the sale of private label and exclusive products increased.
Adese reported that Q2 revenue increased by 6.4% to TRY 1171.5m (€51.2m), while net profit increased by 78.1% to TRY 5.7m (€1.7m).
Uyum revealed that Q2 net revenue declined by 0.6% to TRY 114.3m (€34.2m), while there was a net loss of TRY 893,656 (€267,508) versus a profit of TRY 3.4m (€1m) during the same period last year.