Despite year-long discount campaigns that allowed branded retail to close 2025 with only modest growth in unit sales, January brought a steep downturn.
According to the United Brands Association (BMD), which represents 512 non-food retail brands, four out of five companies reported declines in both unit sales and revenue compared to December.
BMD President Sinan Öncel noted that while the sector had not expected a strong performance in January, the results fell short even of their cautious forecasts. “Compared to December 2025, four out of five of our brands saw both unit sales and revenue drop. Even in categories where heavy discounts were applied, such as footwear and apparel, sales volumes shrank — 90 percent of footwear brands and 77 percent of apparel brands reported lower unit sales,” he said.
Year-on-year comparisons painted a slightly more positive picture. Fifty-eight percent of brands increased unit sales compared to January 2025 and 92 percent reported higher revenues, Öncel said. However, he added, nearly half of these companies stated that their revenue growth lagged behind inflation, underscoring the sector’s profitability challenges.
Öncel emphasized that 2025 had already been a year in which profitability was sacrificed for volume, with sales driven largely by deep discounts. The January survey results suggest that even aggressive markdowns were insufficient to stimulate demand, according to Öncel.
He warned that the erosion of profitability, now in its third consecutive year, is amplifying the sector’s fragility. Rising costs, particularly rents, remain a pressing concern. “If cost increases are not curbed, the coming months could prove even more difficult,” Öncel cautioned.
