Performance, Trends and Innovations in the Current Trade Sector Context

Bircea Ioan () and Zsido Kinga Emese ()
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Bircea Ioan: University of Medicine, Pharmacy, Sciences and Technology of Targu Mures, Romania
Zsido Kinga Emese: University of Medicine, Pharmacy, Sciences and Technology of Targu Mures, Romania

Proceedings of the International Conference on Business Excellence, 2019, vol. 13, issue 1, 71-83

Abstract: The commercial sector and especially the food trade in Romania have expanded more and more through the medium of hypermarkets-supermarkets, online commerce, etc. thus dominating the market. The turnover and profit they make are significantly increasing, while small and medium-sized businesses in stores and traditional stores lose customers, their market share is diminishing, profitability is low, and they are confronted with big financial problems. Modern trade tends represent almost 60% of Romania’s total market, which means that small shops are losing ground in detriment of others, despite their currently large number at national level. The study, extended over a period of more than 5 years, includes a comparative analysis of the small and medium-sized enterprises in the food commerce sector of Cluj County and the supermarkets-hypermarkets in Romania. Advantages of hypermarkets - supermarkets, online commerce, etc. in relation to small and medium-sized stores are ultimately reflected in the financial performance. Following the selection of 5 financial indicators, considered by the authors to be representative of the trade sector, and their comparative analysis, one can see the economic and financial situation these small and medium retail companies are facing, if they do not change their strategy. Their disappearance from the Romanian market would result in social and economic consequences and the discontent of a segment of the population.

Keywords: financial performance; food trade sector; hypermarkets; traditional smaller shops (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:poicbe:v:13:y:2019:i:1:p:71-83:n:8

DOI: 10.2478/picbe-2019-0008

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