BİM manager's reaction to Erdogan's words
BİM Executive Board Member Galip Aykaç reacted to President Erdoğan's blaming chain stores for the increase in food prices. Aykaç said, 'It is easy to direct the public through us'.
19 October 2021 23:08Updated: 20 October 2021 00:46
President and AKP Chairman Recep Tayyip Erdogan, in a speech he made in September, blamed "five big chain markets" for food inflation and said "They are turning the market upside down". These words of Erdoğan were reacted by Galip Aykaç, Member of the Executive Board of BİM and President of the Food Retailers Association (GPD).
Saying that they do not accept the criticism that chain stores are responsible for the increase in food prices, Aykaç said, "It is easy to direct the public through us."
'WE ARE FORCING TO REFLECT THE PRICES'
Saying, “We are pushing ourselves not to reflect the price fluctuations coming from the supply chains to the consumers,” Aykaç said:
“It is clear that we have entered an inflationary period not only in our country but also all over the world. While there is an increase in food prices in the world, it is not possible for our country to stay out of this situation. Organized retail plays a key role in the fight against inflation. It is observed that inflation has decreased in countries where organized retail has grown. The ratio of organized retail in all retail in our country is around 50 percent. In developed countries, this rate is around 90-95%.
The organized retail sector acts as a shield against increasing prices due to the scale economy it creates in the national economy. This position of our sector ensures that consumer inflation remains at low levels in the face of high producer inflation.”
EXTRA PRICE CONTROLS
Saying that it is not right to stigmatize the industry with exorbitant prices, Aykaç said, “We have never stood against such inspections. However, unless the main reasons for the price increases on the agenda are examined and measures are not taken, concentrating these controls only on the last sales points and creating the perception in a way that shows the markets as the reason for these increases will not have a positive result.
Stating that another misconception created is that prices are determined jointly by industry players, Aykaç said, “The reason for selling prices that are close to each other is the intense competition in the industry, rising supply costs and label prices close to costs, contrary to an unfounded claim like an agreement. It is seen that sales are made even at a loss in some periods due to competition. Therefore, similar prices are the result of intense competition.
Galip Aykaç, President of the Food Retailers Association and director of BİM
'PUBLIC COMPANIES ARE DAMAGED BY FALSE CLAIMS'
Arguing that such allegations negatively affect publicly traded companies in the sector, Aykaç continued:
“We are saddened by the misconception created by these claims, which are far from reality and practicability. Moreover, our businesses, most of which are open to the public, are very important values of our country and our people. And thanks to this perception, it is obvious that it is being harmed altogether.
Aykaç said that the main point to be paid attention to is the problems caused by the unbalanced income distribution, the decrease in purchasing power and the gradual contraction of the middle income segment. Aykaç said, “It is nothing but an easy thing
to direct the public through us, which is the last point, by ignoring the structural problems of our country in agriculture, ” said Aykaç:
We do not accept the effort to create a public perception through us as the industry, when the supply-demand balance has not been able to reach a holistic structure with production, while producer supports are controversial, that is, we should focus on these issues.”
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