Turkey An Expanding Economy
Tesco to Spend $750m on Turkish Expansion
One of Ireland’s largest retailers plans to increase its number of hypermarkets in Turkey and to break into Istanbul. It now has 46 stores in clusters around cities such as Izmir, where property is cheaper. The business, which trades as Kipa, generated £500 million of revenue in 2007.
A spokesman said: “Turkey is a fast-growing and exciting market and we are delighted with how the business is performing. Entering Istanbul — the biggest city in the country — will bring Kipa quality and value to many more Turkish customers.”
Tesco runs stores in 13 countries outside Ireland, including Poland, Korea and China and recently opened a chain of Fresh & Easy convenience stores in the United States. It is also eyeing Russia and India.
Sir Terry Leahy, Tesco’s chief executive said, “We are on the threshold of becoming one of the few successful international retailers.”
Under the plans announced Tesco will spend about $150 million a year between now and 2013. Much of the money will build more hypermarkets. Tesco runs 12 in the country alongside convenience stores and smaller supermarkets. The first store in Istanbul is expected to be unveiled in May.
Tesco’s move coincides with the first round of bidding for Migros, the Turkish supermarket chain. Germany’s Metro, Carrefour of France and IKEA have all stepped up their expansion efforts in the country.
Turkish property sector growth expected to exceed 10%
Turkish real estate companies expect the building and property sector to grow by more than 10 percent this year, while up to four property firms will list on the stock market, the business association head said. Turkey's economy, which suffered a financial crisis in 2001, is now enjoying strong growth and is attracting foreign investors. Haluk Sur, who heads the Association of Real Estate Investment Companies (GYODER), reckons the real estate and construction sector will outpace overall economic growth this year to become a more important chunk of the economy