About this Section

This industry includes wholesale and retail sale (i.e. sale without transformation) of any type of goods, and rendering services incidental to the sale of merchandise.

Wholesaling and retailing are the final steps in the distribution of merchandise. Also included in this section are the repair of motor vehicles and motorcycles.

Sale without transformation is considered to include the usual operations (or manipulations) associated with trade, for example sorting, grading and assembling of goods, mixing (blending) of goods (for example sand), bottling (with or without preceding bottle cleaning), packing, breaking bulk and repacking for distribution in smaller lots, storage (whether or not frozen or chilled).

Division 45 includes all activities related to the sale and repair of motor vehicles and motorcycles, while divisions 46 and 47 include all other sale activities. The distinction between division 46 (wholesale) and division 47 (retail sale) is based on the predominant type of customer.

Wholesale is the resale (sale without transformation) of new and used goods to retailers, business-to-business trade, such as to industrial, commercial, institutional or professional users, or resale to other wholesalers, or involves acting as an agent or broker in buying merchandise for, or selling merchandise to, such persons or companies. The principal types of businesses included are merchant wholesalers, i.e. wholesalers who take title to the goods they sell, such as wholesale merchants or jobbers, industrial distributors, exporters, importers, and cooperative buying associations, sales branches and sales offices (but not retail stores) that are maintained by manufacturing or mining units apart from their plants or mines for the purpose of marketing their products and that do not merely take orders to be filled by direct shipments from the plants or mines. Also included are merchandise and commodity brokers, commission merchants and agents and assemblers, buyers and cooperative associations engaged in the marketing of farm products.

Wholesalers frequently physically assemble, sort and grade goods in large lots, break bulk, repack and redistribute in smaller lots, for example pharmaceuticals; store, refrigerate, deliver and install goods, engage in sales promotion for their customers and label design.

Retailing is the resale (sale without transformation) of new and used goods mainly to the general public for personal or household consumption or utilisation, in shops, department stores, stalls, mail-order houses, door-to-door sales persons, hawkers, consumer cooperatives, auction houses etc. Most retailers take title to the goods they sell, but some act as agents for a principal and sell either on consignment or on a commission basis.

Industries within this Section

  • Retail trade, except of motor vehicles and motorcycles
  • Wholesale and retail trade and repair of motor vehicles and motorcycles
  • Wholesale trade, except of motor vehicles and motorcycles

Consumer behavior in the industry

Consumers’ changing preferences and needs are the most apparent demand side driver in the industry. Consumers’ changing preferences and needs include social and lifestyle changes. These include, rise in incomes and consumer purchasing power, changes in consumer purchasing patterns for example, purchases of food and clothing have not changed over the recent past in response to changes in prices or incomes, whereas the demand for many services like travel and personal services rose more than proportionately with income. Also, increase in the participation rate of women in the workforce, greater availability of consumer credit; and more reliable and affordable cars, refrigeration (i.e. storage capacity) are other factors that altered consumer purchasing patterns.  

There is a trend in the industry that is widely accepted by Turkish consumers to combine activities such as grocery shopping with other types of shopping, say for clothes, and/or some form of entertainment such as a meal, movie or an amusement. An increase in product range is another consequence of rising real incomes and the cost of consumer’s time, but also reflects the benefits retailers can derive through economies of scale and scope. For example, supermarkets have consolidated the sales of groceries, meat and household items. As stores become larger they handle more products and introduce new departments such as bakeries, florists and delicatessens.

Technological advances in the industry

There were an uptake of new productivity-enhancing technologies in the 2000s in the whole sector. The use of warehouses as places to store inventory has been switching to more centralised flow-through distribution centres with automated stock replenishment systems. Adoption of supply chain management technologies in wholesale sector made it easy to reduce the time spent shipping, receiving, tracking, and compiling order data. Technological advances facilitated effective inventory control, improved customer service at the check-out and reduced labour in pricing stock as well it enabled the distribution and sales to be synchronized to permit automatic replenishment.

Improvements in the supply chain technology such as convenient self-serve stores,  cloud computing that provides unified transaction platform integrating with ERP, loyalty platforms to deliver personalized experiences. These innovations in the industry occurred through changes in organisational form aimed at better matching the combined resources of consumers and industry participants.

Continuing expansion in the industry

TurkAnalitik considered a range of factors internal and external to the industry in making these forecasts like technological advances, changing consumer behaviour, macroeconomic landscape and the economy's stage in the business cycle, demographic shifts and, importantly, Turkey's increasing appetite to grow its economy, its EU integration efforts and its wider integration efforts to integrate into global economy. These factors are used as exogenous inputs into TurkAnalitik's ARIMAX model in generating the forecasted values in the table above.

TurkAnalitik forecasts that the number of enterprises in the industry will reach 1,163 million that will employ about 2,841 million employees in 2023. Total number of persons employed by the industry is also forecasted to reach 4,454 million in 2023. In line with the sluggish growth in wages, total personnel costs in the industry will grow less than its historic average over the next five years reaching 220.3 billion TL.

Report details

15 Jul 2019



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