COUNTRY SECTOR SUMMARY - RETAIL TURKEY
Coface’s sector risk assessment on retail in Turkey is currently at ‘High Risk’. Coface downgraded its risk assessment of Turkey’s retail sector from “High”’ to “Very High” in the second quarter of 2018, and has not upgraded it since. The main threat for Turkish retailers comes from exchange rate volatility and slower domestic consumption. The Turkish lira hit an all-time low of 7.21 versus the US dollar in mid-August 2018, and lost nearly 40% of its value against the greenback over the year, pushing up inflationary pressures and input costs for companies.