Turkish Cypriots spend £8.7 million a month at supermarkets in south
By Simon Bahceli
TURKISH Cypriots spend around £8.7 million per month in supermarkets in the south, according to a survey carried out by the Turkish Cypriot Chamber of Commerce and KADEM, the north’s leading market research body.
“We cannot underestimate the effect and importance of spending in the south, and if we are to survive, we need to compete in terms quality, choice, price and service,” head of the Turkish Cypriot Chamber of Commerce Hasan Ince said yesterday at a news conference to mark the publication of the survey’s findings.
The research was carried out amid growing fears in the north that Turkish Cypriots are abandoning shops owned by their ethnic kin in favour of large retailing outlets in the south.
Although figures were not available on the amount Turkish Cypriots spend in the north, a surprisingly large percentage cross the Green Line regularly to do their main weekly or monthly shopping.
According to the research, which was carried out in November last year, almost 20 per cent cross at least once a month. Ten per cent go once every ten days, and a smaller 5.5 per cent go at least once a week. For each visit, the average spending is £113 per head.
However, researches conceded that this average may have reduced in recent days after the authorities in the north implemented tighter restrictions and taxation on larger purchases. Because a sizable portion was being spent on work machinery and expensive electronic items now subject to tax, average spending could have fallen to just over £86 per visit, or an average of £6.7 million per month for the whole community, head of KADEM Muharrem Faiz explained.
Something that stands out in the research is the importance of wealth, age and education levels in determining shopping habits. Unsurprisingly, it is the young, educated and moneyed who shop the most in the large outlets in the south, “and not the poor looking for a bargain,” Faiz said.
What is drawing Turkish Cypriots across the Green Line is “product quality”, a factor that 84 per cent of the 951 individuals questioned gave as the most important. But also high on the list of priorities were “choice” and “pricing” and “easy parking”.
Other than for food shopping, however, Turkish Cypriots apparently make relatively few other purchases south of the Green Line. Despite the opening of IKEA in the south, over 90 per cent still buy their furniture north of the Green Line. The bulk of the remainder travel to Turkey to buy items to decorate their homes. Likewise, only 1.7 per cent of Turkish Cypriots said they bought kitchen appliances, such as fridges and washing machines, in the south.
The Chamber of Commerce, and the Kaner Group of Companies which backed the research, aim to use the findings to devise a strategy to draw Turkish Cypriots back to retailers in the north. However, one of the biggest problems they will need to overcome, according to Ince, is the high cost of shipping between Turkey and north Cyprus.
“It costs as much to ship a crate from Argentina to Turkey as it does to ship a crate from Mersin [in southern Turkey] to Famagusta,” he complained.
High import duties, taxation, unfair government investment policy and restrictions on opening hours were also cited as obstacles to “fair trade” with the Greek Cypriot side.
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