Amazon holding talks to enter Turkey

Dünya Executive - - OVERVIEW -

Amazon, the US based online retail giant, is holding talks to penetrate Turkey, sources said. The company is in negotiatio­n with the government in Ankara and could either conduct a greenfield investment or enter the country through an acquisitio­n, which is more probable, according to those sources. The giant retailer has already hold talks with domestic players but haven’t yet decided on a deal.

Amazon had acquired United Arab Emirates based Souq.com for USD 650m in March and in a recent move acquired upscale U.S. grocer Whole Foods Market Inc for 13.7 billion $. So the company isn’t only interested in online retailers but also is in an effort to transform successful fresh produce retailer brands into online retailers with its proprietar­y technology. Amazon is already in touch with Turkish retailers and could follow the same route and acquire a retailer both on the online segment or offline chains with less online exposure to exploit larger growth opportunit­ies, a retail expert said.

There are 46 million internet users in Turkey and it has a 58% penetratio­n rate, which is below the emerging markets but higher than the BRICS’. E-commerce has a total volume of 17.5 billion Turkish lira.

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