Osmanbey, known as the heart of the textile sector in Istanbul, is having a hard time due to the increasing exchange rates. Because the rents paid are predominantly in dollars, Osmanbey, whose costs increase with the increase of foreign exchange, is closing the shops for this reason. In the most busy streets and streets, where there are plenty of vacancies or announcements for sale, the number of the branches has decreased by half.
Ilker Karatas, President of the Osmanbey Textile Businessmen Association (OTİAD), who we met to talk about the effects of vacant stores and foreign exchange rates, said that many stores now expect to rent for long periods and that the ratio of vacant stores in the district has reached 20 percent.
Karataş expressed that shopkeepers are talking about buying rentals through the Turkish Lira with shopkeepers and that some shopkeepers accept new arrangements so that the shops are not empty, while others have discounted up to 40 percent on foreign currency in the rents.
Karataş also emphasized that foreign exchange has difficulties in terms of import supply and borrowing with foreign currency at the same time and said that the fluctuation in the exchange rate has a negative effect on cost management. Karataş, underlining that all these conditions seriously affect profitability, said that the drop in profitability is much higher than the drop in turnover. Karatas, “Unemployment increased, there is no cash flow. Low profit margins are being made just to keep the workshops empty. The industry can only last one season, ” he said.