We round up the 2015 results from BIM, Migros, CarrefourSA, Bizim Toptan, Adese & Uyum where despite sales growth, many retailers face profitability challenges.
BIM & Migros enjoy double digit sales growth
Turkey's BIM has revealed its 2015 results, reporting that net sales increased by 21% to TRY 17.4bn (€5.4bn) and like-for-like sales increased by 10.8%. Net income increased by 48% to TRY 583.2m (€183.2m).
Migros Ticaret has also revealed its results, reporting a sales increase of 15.6% to TRY 9.35bn (€2.93bn), although it reported a net loss of TRY 370.5m (€116.1m).
Store openings continue at pace in 2015 and beyond
In 2015, BIM opened 585 stores, including 59 in Egypt and 56 in Morocco, despite having plans to open 81 stores in Morocco during the year. In 2016, the retailer is set to increase its rate of store openings in international markets, with plans to launch 100 stores in Egypt and 80 stores in Morocco.
In Turkey, BIM is to increase its rate of store openings even further, with plans to launch an additional 600 stores in 2016.
This year, capital expenditure is also set to increase by 40.3% to TRY 700m (€217.6m). In 2015, 64% of capital expenditure was spent on new store openings, land and warehouse acquisitions.
The retailer has also revealed plans to launch a further 15 large discount FiLE stores, bringing the store count for the banner to 24 stores by the end of 2016.
Source: IGD Research, FiLE
During 2015, Migros also increased its rate of store openings. It opened 257 stores during the year including three stores in Kazakhstan and five in Macedonia, bringing its total store count to 1,410 stores. In 2016, the retailer will be targeting double digit sales growth and the launch of 150-200 new stores.
Migros growth drivers: private label & fresh
Migros revealed that its 2015 sales performance was driven by new & existing stores, as well as growth in private label and fresh categories. Supermarkets were the most popular channel, representing 80% of sales.
Elsewhere in the market...
CarrefourSA revealed that sales in 2015 increased by 25.7% to TRY 3.93bn (€1.23bn), which was largely attributed to the retailer’s acquisition of Kiler’s 200 stores. This was one of three acquisitions that CarrefourSA made in 2015. However, the retailer reported a loss of TRY 31.7m (€9.94m).
Wholesaler Bizim Toptan reported that 2015 turnover increased by 12.5% to TRY 2.56bn (€802.3m) as net profit increased by 32% to TRY 14.4m (€4.51m). During the year, the retailer opened three new stores, bringing the total store count to 156 stores. Bizim Toptan has also explored expansion through franchising and now operates around 262 franchised stores. In 2016, the retailer will continue to drive growth and profitability.
Adese revealed that 2015 revenue increased by 5.5% was TRY 642.9m (€199.8m), while net profit jumped by 177.3% to TRY 51.3m (€16.0m).
Uyum reported that sales increased by 10% to TRY 422.4m (€132.4m), alongside a net loss of TRY 948.8k (€297.4k).
Looking for more insight on Turkey? Check out our insight presentation, 'Eight trends from Turkey' here:
|This article was written by Harriet Cohen, Senior Retail Analyst in IGD's international research team. Harriet is responsible for shaping IGD's research into Turkey; as well as contributing to IGD's broader European research programme. Harriet regularly travels to markets in the region, visiting stores and engaging with retailers and manufacturers. She brings five years of experience working for leading UK retailers to IGD. To learn more about how IGD's research can benefit your business further, please get in touch. |