Chain Markets Started to Give Verbal Defense

President Erdogan had ignited a new debate a few months ago. The reason for the increase in food prices is in Turkey’s five largest to the chain market Erdogan, who tied the knot, had the Ministry of Commerce in action with the instruction he gave and started an investigation on the subject. Now, there has been a very important development on this issue. Chain markets, as of today oral defense they have started to do.

The first chain store to participate in the oral defenses that started as of 10:30 am, with interesting and surprising claims. sitting on the spot A101 it happened. Company officials, in their defense to the Ministry of Commerce’s inspectors, said that the price increases there is nothing to do with themWhile the minimum wage and the exchange rate increased by 2 times, the items such as electricity expenses increased by 3 times. there’s nothing else left to do they said.

A101 has lost 1 billion 32 million liras in profit in the last 2 years

to the authorities”Food Retail Industry FactsA101 management, who made a presentation named “Increases in expenses to suppliers’ production costs direct reflection an undeniable fact. This is reflected in the retailers’ input costs as an increase. The increase in purchasing costs, especially in recent years economic developments clearly reveals.They tried to explain why food prices rose.

According to A101 executives, the company already Losing profits for the last 2 years. According to the authorities, who also give figures on this subject, the A101 has increased its gross profit in the last 2 years. 1 billion 32 million 11 thousand 23 TL lost. In the oral defense,Contrary to a period when it is said that collusive price increases were made with its competitors. damage was done. The same proportion of the increase in costs to the selling prices not reflected is seen. In addition, we are of the opinion that the claim that chain stores form cartels is not true in terms of the rule of law.” was also included.

Image taken from the Food Retail Industry Facts presentation

• In the period subject to the investigation, the client company gross profit margin decreased by 1.67%.
• The decrease in the gross profit margin by years, the total amount of TL 1.032.011.023 of the Client Company in the last two years. suffered a loss of profit shows.
• Gross profit margins fall each year, making the market less likely to give the lowest price. that there is intense competition is a clear indicator.
• All these matters; Any of the Client Company not in the cartel formation it reveals.