Measuring the Efficiency of Turkish Apparel Retailers

Abstract

This study analysed the efficiencies of Turkish apparel retailers in 2010 by using actual retail data based on the research conducted by PricewaterhouseCoopers and published in TurkishTime periodical by using data envelopment analysis method in Excel Solver. The efficiencies of the retailers were evaluated in terms of overall technical efficiency, pure technical efficiency and scale efficiency. In addition, input targets for each company were calculated in order to identify the improvement ratios that each of the inefficient companies can become efficient by achieving these ratios.

Evaluating retail efficiency using DEA and AHP: a case in the Turkish apparel retail industry

“…It was seen that the most challenging input variable, in terms of OTE and PTE, was the "number of employees." The apparel retail industry is human-intensive; however, companies should be careful about the number of staff they employ, since more than the required staff can decrease their efficiency, as found in previous studies (Erdumlu and Saricam, 2013;Li and Tsai, 2018). It can also be concluded that unadjusted assets may be wasteful since the improvement was suggested in terms of "total assets" and "equity" for all the inefficient retailers.…”

“…The output of the model was the total annual sales revenue. Erdumlu and Saricam (2013) measured the efficiencies of Turkish apparel retailers listed in Turkish time in 2010. The inputs included the number of employees, sales area, number of stores and number of franchises, whereas domestic revenue was the output.…”