2024-10-21 08:01:00
• With good cash flow management
• Business leaders optimistic for the next quarter
• According to the INSD economic report
Con accordance with the forecasts made by business leaders for the first quarter of 2024, commercial activity seems to begin a recovery in the second quarter of 2024. It is one of the sectors of activity to announce an increase in its indicators, 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 sector of activity announced an increase in sales, order books and orders delivered, all things which contributed to improving the cash flow situation.
But not all trade subsectors are affected by this good news. Only the wholesale trade subsector remained green during both quarters of the year.
This subsector includes the activities of wholesale trade intermediaries, wholesale trade of raw agricultural products, live animals, food products, beverages and tobacco, wholesale trade of non-food consumer goods, wholesale trade non-agricultural intermediate products (wholesale of wood, fuels, construction materials, hardware and plumbing supplies), wholesale of machinery, equipment and supplies and non-specialized wholesale.
This sub-sector of wholesale trade excluding transport equipment is experiencing stable sales in the second quarter of 2024 compared to a normal situation. Quarter-on-quarter, revenues are up due to an easing of cash flow. However, the number of employees remains stable. Likewise, both compared to the previous quarter and to that corresponding to last year, the same development is noted. Looking forward, wholesale trade officials remain optimistic. They anticipate, in fact, stable employment with an increase in sales and good cash flow performance. On sales and revenues, 100% of business leaders operating in this sub-sector announced an increase, and half of them believe that this increase in their revenues and sales will continue for the coming quarter. The same goes for the cash flow situation which remained green.
Drop in sales for trade and repair of transport equipment
The transport equipment trade and repair sub-sector is experiencing a situation below the normal situation in the second quarter of 2024. This is reflected in all activities in this sub-sector, namely marketing activities (wholesale and retail, 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 sub-sector.
Quarter-on-quarter, we also noted a drop in sales and number of employees, despite good performance in the cash flow situation. Compared to the same quarter of the previous year, revenues and number of employees are down against a backdrop of cash flow difficulties. In anticipation, those responsible for the sub-sector do not expect an increase in sales. Nevertheless, the level of employment is expected to increase, with an improvement in the cash flow situation.
Cash flow tensions for retail
The retail trade sub-sector includes the resale (sale without transformation) to the public of new or used goods essentially intended for the consumption of individuals or households, by stores, department stores, counters and kiosks, mail order houses, peddlers and traveling merchants, consumer cooperatives, and retail trade through intermediaries and the activities of auction houses open to individuals.
In this subsector, the second quarter of 2024 is marked by a drop in revenue, compared to the normal situation. Compared to the previous quarter, business leaders estimate that sales have increased, while the number of employees has decreased against a backdrop of cash flow tensions. Compared to the second quarter of 2023, sales and number of employees declined due to cash flow constraints. For the next quarter, managers of companies in the sub-sector hardly expect a resumption of activity. They anticipate, in fact, a drop in revenue and number of employees and a persistence of cash flow tensions.
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Difficulties encountered in the trade sector
CLike all other sectors of activity, the commerce sector is experiencing some difficulties. In fact, 86.9% of companies encounter supply difficulties and 30.3% consider demand to be insufficient. Furthermore, 25% of companies operating in this sector declared that they were facing financial constraints.
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