Headline: Retail Confidence Takes a Hit in September

The 177th issue of the TEPAV Retail Confidence Index (TEPE) has been published. According to the report, TEPE recorded a value of -14.9 in September, marking a decrease of 26.0 points compared to the same period last year and a decrease of 6.0 points from the previous month, showing that retail confidence remained negative in September. Among the retailers participating in the TEPE survey, the proportion stating that business conditions worsened in the last three months rose from 56.7% to 61.1% in September 2024. Meanwhile, those expecting improvement in the next three months decreased from 32.2% to 17.5%. Additionally, 63.6% of retailers expect an increase in sales prices over the next three months.

Retail confidence declined the most in the "furniture, lighting equipment, and household goods" sector. On a sectoral basis, the "furniture, lighting equipment, and household goods" sector experienced the largest decline in retail confidence. In contrast, sectors such as "grocers, markets, and department stores selling multiple types of products," "electrical household appliances, radios, and televisions," and "textiles, apparel, and footwear" performed above average.

Retail confidence dropped the most in the Western Black Sea region. Regionally, the Western Black Sea region recorded the largest drop in retail confidence in September 2024, followed by the Aegean and Mediterranean regions. On the other hand, retail confidence performed above average in the Southeastern Anatolia, Eastern Marmara, and Istanbul regions.

In the EU, retail confidence declined. The EU-27 Retail Confidence Index, which has recorded negative values since March 2022, was noted at -6.5 points in September 2024. Despite a 0.1 point increase from the previous month, there was a 1.6 point annual decline.