Young Turks choose shopping mall over bazaar

By Daren Butler

ISTANBUL (Reuters) - For centuries, Istanbul lured intrepid shoppers with colorful jewellery and carpets which tumbled from shops in the ancient alleyways of the Grand Bazaar.

Today, the city's affluent young middle-class is embracing a different kind of shopping experience in giant glass-and-chrome malls, whose rise strikingly illustrates Turkey's emerging prosperity, but also spotlights some economic frailties.

Shopping malls are sprouting across Istanbul at a dizzying pace, with foreign money attracted by Turkey's large, young and growing population of over 70 million. According to official data, per capita income surged to $9,333 (4,741 pounds) in 2007 from $7,500 a year earlier and is expected to continue rising strongly.

"Organized retailing is coming alive and competition is growing, to the consumer's advantage. The choice of brands is increasing and quality is rising," said Turan Ozbahceci, chairman of PERDER, an Istanbul Retailers' Association.

With around 2 million square meters of retail space due for completion in 2008, Turkey has the third largest stock of malls being built in Europe, behind Russia and Spain, according to real estate firm Jones Lang LaSalle.

The sector is set to double in size within five years, expanding further into the Anatolian heartland, according to the Turkish Council of Shopping Centres and Retailers (AMPD).

But there are concerns that a glut of projects could flood the market just as global economic woes put the brakes on years of strong growth in this European Union-candidate country.

Economic growth last year dipped to 4.5 percent, after growth rates of 6.8 percent on average since 2002. The government has said it expects growth of 4.5 percent in 2008.