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Global fashion retailers are continuing to hold back from entering the Turkish market as inflation and a shortage of suitable retail space complicate expansion plans, according to Turkish media.
Japanese apparel giant Uniqlo and Irish fast-fashion retailer Primark are among the companies reassessing or slowing their Türkiye plans under current market conditions, sector representatives say.
A senior sector representative familiar with the talks told business-focused ekonomim.com that a Turkish investor had approached the Japanese company about acquiring the brand’s Türkiye representation rights and bringing Uniqlo to the country.
However, the company stated that it currently has no plans to enter the market within the next two years, as it wants to see lower inflation and improvements in the investment environment before reconsidering a move into Türkiye.
Uniqlo could become a major player in Türkiye’s ready-to-wear market if it eventually launches operations in the country, citing strong demand from Turkish consumers who already shop from the brand abroad, the report suggested.
Türkiye’s clothing industry has been under pressure as growth in the trade sales volume index for textiles, clothing and footwear slowed to 31.4% in March while inflation remained at 30.9%, squeezing profit margins amid rising costs and tight monetary conditions.
Primark is also exploring a possible entry into the Turkish market, the report added, but the retailer’s search for suitable locations has moved slowly due to its preference for standalone stores in Istanbul with at least 3,000 square meters of space.
The company has been evaluating high-traffic areas, but the limited availability of large retail spaces in shopping malls and suitable standalone buildings has slowed the process, according to the report.
The lack of suitable retail space has also kept rents elevated across the city. Store rents in Istanbul rose 40% in April from a year earlier, further squeezing profit margins, Endeksa data showed.
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