Retail Management Fundamentals

Depending on the socio-economic developments in Turkey, the retail sector has gained a certain momentum especially since the mid-1980s and has come to a position where it can compete with retailing in the USA and EU. It would be appropriate to emphasize some basic facts in the development process of retailing:
• While the development of supermarkets, hypermarkets and shopping malls was at the forefront in Turkey, discount stores have become more popular in recent years; departmental (sectioned) stores either disappeared or changed in size and settled in shopping malls instead of independent stores.
• Local retailers have come to an important position in addition to the entry of foreign capital into the market. Besides organized retail, traditional retailers still have a significant share in the total retail market.
• The share of e-commerce in total retail sales is increasing rapidly in the world and in Turkey. It is estimated that the share of e-commerce in the world in 2020 will be 14.60%.
• Traditional single-channel retailing is not sufficient to meet consumer needs. For this reason, compatible omnichannel retailing has become a necessity.
• With the “One Belt One Road” project announced in 2013, China seeks to develop its global strategy in search of a new order in the new era. This new strategy of China indicates that the economic and political balances will be re-established in the world. The project will connect the easternmost of Asia and the European shores of the Atlantic Ocean, and targets 65 countries, including Turkey, and a population of more than 3 billion. These markets have reached saturation, especially Walmart and Carrefour, and mobilized the main retailers of the USA and the West.
• “Industry 4.0” introduced by Germany in 2015 and “Society 5.0” developed by Japan foresee new approaches. These new approaches will change the way retail does business, as it does in other industries. Retail decision makers will pay more attention to topics such as artificial intelligence and big data analytics in order to understand consumer trends and behaviors.