• With good cash flow management
• Optimistic business leaders for the next quarter
• According to the INSD economic report
Coaccording to the forecasts made by business leaders for the first quarter of 2024, it seems that commercial activity begins to recover in the second quarter of 2024. It is one of the sectors of activity to announce increase in his symptoms, according to the note. economic report for the second quarter of 2024, published by the National Institute of Statistics and Demography (INSD), in September 2024. Entrepreneurs in this activity sector announced an increase in sales, order books and orders on the delivery, all that contributed to the improvement of the cash flow situation.
But this good news does not affect all trade sub-sectors. Only the wholesale trade sub-sector remained green in all quarters of the year.
This sub-sector includes activities of wholesale trade intermediaries, wholesale trade of raw agricultural products, live animals, food products, beverages and tobacco, wholesale trade of non-consumer goods food, wholesale trade of non-agricultural intermediate goods (wholesale of timber, fuel, building materials, hardware and plumbing supplies), wholesale of machinery, equipment and supplies and non-specialist wholesale.
This sub-sector of wholesale trade without transport equipment is experiencing stable sales in the second quarter of 2024 compared to a normal situation. Quarter-on-quarter, income is up due to a decrease in cash flow. However, the number of employees remains constant. Likewise, both in comparison to the previous quarter and to the one corresponding to last year, the same development is noted. Looking ahead, wholesale trade executives remain optimistic. They expect, of course, stable earnings with increased sales and good cash flow performance. In terms of sales and income, 100% of business leaders working in this sub-sector announced an increase, and half of them believe that this increase in their income and sales will continue for the coming season. The same goes for the cash flow situation which remained green.
Enter sales for trade and repair of transport equipment
The transport equipment trade and repair sub-sector is experiencing a below normal situation in the second quarter of 2024. This is reflected in all activities in this sub-sector, namely marketing activities (wholesale and sales, auctions) of motor vehicles (new and used) and motorcycles, including coaches and trucks, as well as their parts and accessories. The repair and maintenance (including washing) of these vehicles also falls under this subsection.
Quarter after quarter, we also noted a decrease in sales and headcount, despite a good performance in terms of cash flow. Compared to the same quarter of the previous year, revenue and the number of employees are down against a background of cash flow problems. Predictably, those responsible for the subdivision do not expect an increase in sales. Despite this, it is expected that the level of employment will increase, with the improvement of the cash flow situation.
Cash flow problems for sales
The retail trade sub-sector includes the resale (unaltered sale) to the public of new or used goods necessarily intended for consumption by individuals or households, by stores, department stores, counters and booths, mail order houses, peddlers and traveling merchants. , consumer cooperatives, and retail trade through intermediaries and the operation of auction houses open to individuals.
In this subsection, the second quarter of 2024 is characterized by a drop in income, compared to the normal situation. Compared to the previous quarter, business leaders believe that sales have increased, while the number of employees has decreased in the face of tight cash flow. Compared to the second quarter of 2023, sales and headcount decreased due to cash flow constraints. For the next quarter, company managers in the sub-sector hardly expect a resumption of activity. They expect, of course, a drop in revenue and headcount and continued cash flow tightening.
ESIS
Problems found in the trade sector
cLike every other activity sector, the trade sector has some problems. In fact, 86.9% of companies have supply problems and 30.3% believe that there is insufficient demand. In addition, 25% of companies operating in this sector said they were under financial constraints.
