“Foreign Currency Exchange Rate Brought Stores To The Point Of Closing”

The research done by the United Brands Association has revealed the effect on the emerging foundry sector.
The rise of the foreign currency exchange rate brought retail stores to the point of closing.

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The evaluation was included in the three-year balance sheet analysis of the companies that the United Markets Association (BMD) has prepared with PwC for the period 2014-2016.

According to the analysis, the recent record breaking of foreign currency exchange rates, brands that still have to pay rent on daily basis due to old contracts have brought them to the point of starting store closures or rent adjustment cases.

BMD stated that it is absolutely necessary to present the TL option to the brand, to update the legal legislation so as not to impose the brands on the foreign currency exchange rates, and to reduce the VAT rate from 8 percent to 18 percent absolutely.

According to the analysis, the real growth rate is falling. Rental costs per square meter increased by 7.7 percent, while the increase in turnover per square meter was only 4.4 percent, despite almost year-round discounts.

With new stores opened in the field of sales 6.4 percent increase in the case of stocks 20.1 percent. There is also a slowdown in employment growth; in the case of ready-made clothing, employment is 2 percent contraction. The growth rate of operating profits also appears to have declined by 9 points per year in net sales.

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