The Turkish retail industry, which has become an attractive sector for many foreign investors due to its rapid growth, has been adversely affected by the stagnation in the last quarter of 2007.
Approximately 200 shopping centers were unable to achieve their projected revenues due to economic stagnation, political uncertainty and the smoking ban, which in turn paved the way for a decrease in the number of customers.
The United Brands Association, or BMD, aims to set certain standards for the sector and demand a guarantee of good management from shopping centers through its visits to the malls. The BMD, which seeks to mitigate the adverse effects of stagnation, has visited 12 shopping centers, two investors and four administrators since April.
Eight shopping centers out of 12, namely Panora and Antares located in Ankara, Eskişehir Neo, Kale Outlet, İstinye Park, Bursa Korupark, Bursa Kent Meydanı and Forum Trabzon, have agreed to promote brands through rent discounts, advertising and financial contributions. The rate of discount on rents varies between 10 and 50 percent, with the highest discount implemented by Eskişehir Neo.