Consumers hit the breaks in January-March: Trade group

ISTANBUL

Turkish consumers have cut back on discretionary spending such as cosmetics, personal care, and textiles in the first quarter of 2025, according to the Turkish Retailers Federation.

This reflects the inflation’s impact on consumer behavior, the federation said in a report.

The report states that in the first quarter of 2025, price increases in non-food categories put a strain on household budget, and consumers are significantly cutting back on discretionary spending.

This situation has reshaped companies’ strategies and consumer behavior in the retail sector, according to the report.

“Additionally, shopping habits between online platforms and physical stores are balancing out, while the use of loyalty cards and the tracking of promotional campaigns continue to increase,” it said.

The food retail sector, which struggled with high price increases and cost pressures last year, entered a limited recovery phase in the first quarter of 2025, the report also highlighted.

The report recalled that food price increases from January to April 2025 were recorded at 5.5 percent, 2.3 percent, 4.9 percent and 3 percent, respectively, noting that annual food inflation had declined to 36.1 percent as of April. The report was prepared before the May inflation data was unveiled.

The latest official numbers showed that good and non-alcoholic beverage prices declined 0.7 percent monthly in May.

According to the report, the food retail sector has relatively freed itself from inflationary pressures, while consumers have taken “a more rational and balanced approach.”