Turkey's Migros confident to exceed initial revenue expectations
Migros GM Tort shared his comments about their YTD performance and 2013 targets with the press. They are quite confident to exceed their initial revenue expectation of TRY 6.4bn in 2012e (our forecast: TRY 6.5bn). Tort said that they are expecting to reach a store network of 1000 by 2013. Tort talked about their private label sales; thanks to the 3x higher volume in their Migros-branded products, their prices are quite competitive with the rest of the market. According to Tort, the Turkish retail market will have reached a total size of USD 400-500bn by 2023.
The GM's comments in the media are broadly in line with management's recent comments during last week's conference call. Thus, we perceive the news as neutral and do not expect any material impact on the share price.