Crumbling lira pressures Turkish retailers as economy slows
Subtitled, "Investors flee emerging dictatorship sultanate" | Turkish businessman Tekin Acar had contracts to open branches of his leading cosmetics chain in ten new shopping malls this year. A few days ago he canceled nine of them after sharp falls in the lira meant he would struggle to afford the rents.
Turkey's currency has lost around a quarter of its value since the middle of last year, causing havoc for retailers selling imported goods or paying rent pegged to the U.S. dollar. Many were already suffering from a sharp economic slowdown and dwindling tourism numbers after a spate of deadly bombings.
Foreign brands in Turkey are also suffering. Dutch clothing chain C&A, Britain's Topshop, German cosmetics firm Douglas and U.S.-based dietary supplement retailer GNC (GNC.N) have disappeared from shopping centers in recent months.
Posted by: Steve White 2017-01-23 |