RETAIL AND SHOPPING MALL INDUSTRY
The retail industry, known as the industry in which the world’s oldest economic relations develop, contains a network of relations based on the exchange of products and services. The retail sector, which is highly affected by socio-economic developments and technological advances, has undergone constant change both with the change in production and consumption understandings in the world and with the effect of digital and technological developments, and has incorporated new types of retailers (apparel, food retailing, shopping malls, etc.).
The retail sector, which is one of the drivers of our country’s economy with a turnover volume of 1.4 trillion TL and an annual average growth rate of 17% in the last five years, corresponds to approximately 20% of our gross national product and ranks fourth in terms of turnover volume. Employing a total of 2.5 million people, 900 thousand of whom are in organized retail, the sector had a share of approximately 13% in total employment in 2021.
As NART Sigorta ve Reasürans Brokerliği, we closely monitor the retail and shopping mall sector, which accelerates its growth with each passing day, and we continue to serve the deep-rooted and leading companies of the sector with special solutions we produce on the risks they carry.
MAJOR RISKS OF RETAILING AND SHOPPING MALLS
- • Inflation and sudden currency fluctuations
- • Fluctuations in consumer’s disposable income and purchasing power
- • The deterioration in the financial structure of the sector and the decrease in its borrowing ability
- • Presence of repetitive investments in the shopping mall area that has reached saturation
- • With the increase in customers’ access to information, pricing policies that may arise during campaign periods and that may distort the perception of consumers, especially in the e-commerce wing.
- • Geopolitical tensions prevent shopping tourism (regional political, military conflicts and terrorist incidents)
- • Decline in profit rates
- • Effect of energy costs on total costs
- • Increased labor costs due to COVID-19
- • Decreased growth in the conventional field with the growth in e-commerce
INSURANCE SOLUTIONS FOR THE INDUSTRY
It is inevitable to provide a multi-faceted view of the current situation of the Modern Retail sector, which is the locomotive of the Turkish economy, to examine the existing and potential risks and to reveal the existence of effective risk management systems within this framework.
- • Natural disasters, fires
- • Business interruption,
- • Strike and Lockout, Terror
- • Machine breakage,Electronic device
- • Storage risks
- • Product, raw material, etc. transportation risks
- • Employee responsibilities
- • Third party risks
- • Credit Risks
- • Cyber Risks
- • Environmental risks
