Sok Markets, the shining star of discount markets that closed 2017 with a turnover of TL 9.5 billion, increased the number of stores by 4.5 times in the last 5 years. A recently conducted one of the signatories of the last 10 years, the largest IPO company in Turkey, currently providing services to consumers with exactly 500 stores in 81 provinces, 5 thousand. In food retailing in Turkey yet to go a long way in believing that the Sok Market CEO Ugur Demirel underlines that they continue to grow an average of 3 new stores opening every day. Demirel gave important information on many issues from the initial public offering to the future Sok Market…

Turkey’s most important brands are between discounter and you increase your greatness every day. How did 2018 start for Sok Market and how does it continue? 2017 was a good year for us and we grew fast again. It was a very good year both in terms of the number of stores and the increase in the sales of our stores. According to the report which was prepared for the Sok Grocers,  an independent private consulting firm MK Novo, our company between 2015 and 2017, the fastest growing retail grocery chain in terms of sales revenues in Turkey. Between 2015 and 2017, our revenue increased with a 40 percent annual compound growth rate. Our end-2017 turnover reached TL 9.5 billion. Again in the last five years, the number of stores has increased 4.5 times. We started 2018 with this positive picture. In the last three years, we have opened an average of 1,000 new markets annually. As of December 31, 2017, we have 5,100 Sok stores in 81 provinces. As of the end of March, the number of our stores exceeded 5,500 and we continue to grow by opening 3 new stores on average every day.

Recently, there has been a public offering of Sok Markets on the retail agenda. Can you tell us the details of this topic? How and why was this decision made?We aim to continue our healthy growth that we have achieved to date by increasing public offering. As Sok Grocers, Turkey’s 81 provinces, 5 thousand 500 stores, the original business model, with strong dynamic IT infrastructure and human resources, we serve our customers. We have a significant growth potential and we have decided to go public with our stores and customers in order to take this step even more healthy. Turkey with 2.3 billion TL in the last 10 years we realized the magnitude of one of the largest IPOs realized. Overseas institutional investors demanded 1.76 times the shares allocated. This interest of investors indicates the trust in our country, sector and company. We will strengthen our company’s equity capital by closing our financial debts with the revenue generated from the public offering. We intend to share our profits with our investors within the framework of our policy of increasing our profitability and profit distribution with our strengthened equity capital. We planned the public offering in 2018 in order to enable our investors to become partners in the value created by our company during this healthy growth process.

Discount markets became the biggest acceleration area in the retail sector. What would you say if you were to evaluate the discount market in Turkey?
Discount market not only in Turkey, it became a phenomenon in the global markets. Turkey’s food retail sector is discounting format customers; has achieved the greatest growth by meeting the expectations of proximity and favorable prices, and we expect to continue to do so in the future. Food retailing sector in Turkey, with $ 70 billion in size occurred in 2017 on the basis of household expenditure has reached Europe’s 7th largest market. Between 2012 and 2017, the modern food retail market grew by 19 percent and discounted food retail grew by 28 percent. On the other hand, population growth, urbanization, more household spending due to increased purchasing power, young population willing to spend more and other similar factors helped sustain the growth in this sector. According to World Bank data rate of urbanization in Turkey will be the 2023 level of 72 percent to 75 percent level in 2016. According to World Bank data, the level of urbanization rate in 2016 of 72 percent in Turkey, pointing at the same rate will rise with European countries. It will rise to 75 percent in 2023. Thus a significant way to go in the food retailing sector in Turkey and the store network, we think that there’s a significant potential for expansion. Currently, the market share of organized retail is 40 percent. When we look at developed countries, we see that this ratio is much higher. In these countries, we see that organized retailing reaches 70 percent to 80 percent. This is also an indication of the growth potential of the market in Turkey.  In Turkey, retail

law is constantly spoken of how a study of the problems experienced by the retail sector do you think should be done?
The retail sector in Turkey is one of the most important sectors. The fact that retail laws are always on the agenda due to being a dynamic sector is a natural result of all these.
 

We have the process of Ramadan. How do you prepare for this process Sok Market? Do you have any special works on this subject?
With the slogan “For Abundance of Ramadan Sok is More Than Enough” we have prepared a special supply package for our customers that will meet all their needs specific to Ramadan. The supply package of Sok Market’s branded products offered for sale in our stores is also a good opportunity to continue our tradition of sharing and solidarity during Ramadan. Rice, legumes products, salt, tomato paste, flour, pasta, instant soup, pudding, olives, sugar, oil, tea, petit beurre, jam, Turkish coffee and soda in 19 food packages offered for sale from 49,90 TL. ranks. Different from Ramadan box, Sok Grocery stores will be selling special pita for Ramadan.  Our special Ramadan products such as Gullac, date palm and Ramadan sherbet also appeared on the shelves. Furthermore, corporate and individual customers can share the Ramadan blessings with their loved ones by purchasing Sok cards.  In addition, this year’s campaign “What I Cook Today ”offers a variety of food suggestions, especially using fresh fruit and vegetable products, and gives ideas on what to cook at iftar tables, especially housewives.

Lately, Turkey markets are quite moving. The exchange rate is changing every day. How are retailers and Shock Market affected by this situation?
We, as Sok Markets, do not have any interaction with the exchange rate. Our operational activities, sales and expenses are all in Turkish Lira. Therefore, the increase or decrease in exchange rates has no effect on the operational activities of our company. Only the increase in the price of product raw materials is reflected in the price. As Sok Markets, I can say that we are facilitating the access of consumers to affordable products and thus contributing to purchasing power.  Providing affordable products every day is part of our main strategy. Our inflation is at least a few points below the inflation in Turkey. Therefore, we think that the growth of Sok is actually a downward pressure on inflation.

What kind of Sok will the consumer face after the initial public offering? What are your future goals?
Together with the public offering, we will strengthen our equity capital, thus maintaining our healthy growth in a similar manner to the previous years.  In the past years, we have created 4 thousand new jobs by opening an average of thousands of stores each year.  So far we have come on foot very healthy and correct. Turkey’s food retail sector in terms of sales revenues and fastest growing convenience store chain in the modern food retailing sector as one of the pioneers of our country, we rely on our industry and the market. We believe that a brand new era has started for Sok Market. We will continue our growth without slowing down with our customer-focused activities.