Turkish retail sales rise 2.9% from 2014

Turkish retails sales rose in 2.9 percent in February from the same period in the previous year, the Turkish Statistical Institute said in a statement on Tuesday.
Online sales were an important driver in of this increase: e-commerce sales jumped 47.5 percent compared with February 2014.
Food and drink sales rose sharply as well, up 4.2 percent in the same period and automotive fuel sales jumped 11 percent.
"Consumers have become skittish due to the volatile Turkish lira, because of the elections coming up in June, and because of concerns about inflation," explained Vladimir Miklashevsky, an emerging markets economist with Danish bank Danske Bank. "As a result, they are spending money when they think they can get value, as they are unsure about what the future will bring."  
Miklashevsky pointed out that Turkish consumers were buying food and drink despite the fact that prices are relatively high at this time. A recent report of the Turkish Central Bank cited rising food and drink prices as the most important contributor to inflation in this period.
"There has been relative food scarcity in Turkey, as the past harsh winter hurt harvests, and increased exports of food to Russia have cut into supply," Miklashevsky said.
Turkey exports about $6 billion worth of goods and services to Russia. Food exports now constitute about $1.3 billion, according to the Istanbul Chamber of Commerce.
Turkey has also recently upgraded the laws governing the retail sector. One such regulation, which entered into force on Jan. 29, simplified a number of administrative procedures for retailers, and provides definitions for growing areas of the sector like outlets.
"The law helps to create balanced growth and development for retail businesses," said Özgür Kocabasoglu of the Erdem & Erdem law firm in Istanbul.
Still, the volume of retail sales decreased 0.7 percent in February from January.
Sales of computers, books, and telecommunications equipment led the month-to-month decline, decreasing 3 percent.