Turkey’s Apparel Sector Braces for 30% Price Surge

Turkey’s ready-to-wear industry is buckling under the weight of soaring rents, financing costs, and shrinking consumer demand, with sector leaders warning that winter clothing prices will jump at least 30% in 2026. For households already prioritizing rent and food over retail spending, essentials like coats and boots—now priced between 7,000 and 11,000 TL—are fast becoming unaffordable.

Sector Struggles: “We’re Working Without Profit”

According to Şeref Fayat, President of the Turkish Union of Chambers and Commodity Exchanges (TOBB) Ready-to-Wear Council, the sector is already working at break-even or below. Despite expectations of 25–30% inflation in 2025, companies managed to raise prices by only around 20% this winter, leading to a 20–35% contraction in retail sales.

Fayat explained, “We couldn’t reflect costs despite expecting 25–30% inflation this year. Companies are struggling to sell products at seasonal prices, so discounts are starting earlier. The sector cannot continue staying below inflation next year—production and retail prices will rise by at least 30%.”

He warned that unless monetary tightening and suppressed exchange rates ease, producers will be forced to prioritize cash flow over profitability, with little sign of recovery in domestic demand.

AVM Rent Pressures Push Prices Upward

The biggest driver of rising clothing costs lies in skyrocketing shopping mall (AVM) rents. Sinan Öncel, President of the United Brands Association (BMD), condemned rent hikes far above inflation, stressing that retailers are forced to pass these costs onto price tags. He also pointed out that bank commissions and interest expenses add further burdens, which eventually feed into inflation.

Similarly, Toygar Narbay, Chairman of the Turkish Clothing Manufacturers Association, called for urgent government regulation on rent contracts and financial costs. He noted, “Even with CPI around 30% and turnover-based rent payments, tenants are facing demands for rent increases up to 600% in contracts that have exceeded 10 years. Landlords’ right to terminate without cause after 10 years ties the hands of tenants, leaving them no choice but to reflect rent hikes onto consumer prices.”

Early Discounts, Shrinking Consumption

The combination of weak purchasing power and high costs has forced retailers to slash prices earlier in the season to generate sales, eating into profit margins. Sector data suggests that consumer spending on clothing continues to shrink, with households redirecting their limited budgets toward housing and food. For many, winter shopping has been postponed or scaled back, deepening the sense of stagnation in the apparel market.

A Warning for 2026

Industry leaders unanimously predict that without regulatory relief on rents, bank fees, and financing costs, the apparel sector will face deeper challenges in 2026. With winter essentials already pricing out low-income households, the expected 30% price increase next year risks widening the affordability gap even further.

As Turkey’s broader inflation picture moderates, the ready-to-wear industry stands as a reminder that structural pressures like rents and financing costs can keep consumer prices climbing—regardless of official inflation figures. Without intervention, winter clothing may shift from being a seasonal necessity to a luxury item for millions.