Crumbling lira hits Turkish retailers as costs rise amid slowing economy

Istanbul

TURKISH businessman Tekin Acar had contracts to open branches of his leading cosmetics chain in ten new shopping malls this year. A few days ago, he cancelled nine of them after sharp falls in the lira meant he would struggle to afford the rents.

Turkey's currency has lost around a quarter of its value since the middle of last year, causing havoc for retailers selling imported goods or paying rent pegged to the US dollar.

Many were already suffering from a sharp economic slowdown and dwindling tourism numbers after a spate of deadly bombings.

Foreign brands in Turkey are also suffering. Dutch clothing chain C&A, Brit…