Angratosian business remains minus after the first 4 months. Why are they a very important economic indicator and where were the biggest decreases
Trade – TIR, PHOTO: Avesun | Dreamstime.com
The turnover in the wholesale trade in the first 4 months of this year decreased by 3.1%, said on Thursday, as a result of the decrease of the wholesale trade in gross agricultural products and live animals (-30.3%), trade with other products-fuels are included, products for sanitary installations, etc. (-8.1%) and commerce,
Increases registered: trade with computer equipment (+6.2%), non -specialized wholesale (+5.7%), wholesale trade, other than food (+5.4%), wholesale trade of other machines, equipment and supplies (+4.2%) and intermediation activities (+3.5%).
The biggest decrease was to the traders of gross agricultural products and live animals, a group that includes the wholesale sales of cereals, seeds (here operate 1,216 companies), flowers (286 companies), skins and fur (in the latter case a very small number of companies operates- about 25).
The wholesale trade is a critical, often unseen spine of the economy, which plays an essential role in the supply chain, acting as a bridge between producers and retailers.
A wholesale sales are a very important economic indicator, because it offers early signals about the direction of the economy in general and consumption (the main engine of the growth of the Romanian GDP) in particular. This is due to its intermediate position between retailers and traders, as well as its role in stock management and response to request changes
The wholesalers buy goods in large quantities from the producers and then divide these orders in smaller quantities, easy to manage for retail traders. This process is crucial because the producers are not equipped to manage numerous small retail orders, and retail traders do not need the massive volumes produced by the manufacturers.
The wholesalers deal with the complex logistics of the storage, transport and delivery of the goods. Often they have large deposits, set distribution networks and expertise in stock management, which ensures that products reach the destination efficiently and in time, releasing producers to focus on production, and retail traders to focus on sales and services for customers.
The wholesalers are in a unique position to collect market data, trends and preferences of consumers due to their direct interactions with numerous retailers. They can transmit this information to the producers, helping them to adjust their production and marketing strategies.
