The Confederation of Wholesalers of France (CGF) recently revealed the results of the wholesale trade activity barometer carried out with Xerfi for the last quarter and the whole of 2023. The opportunity for wholesalers to recall the indispensable nature of their function in the economy and the daily lives of the French.
In the fourth quarter of 2023, wholesale turnover increases by 3% . Throughout 2023, the growth rate is 5,3 %. It is significantly lower than that of 2022 (+ 9 %) and largely driven by inflation, who reached 4,9% in 2023. The results, very contrasting depending on the sector of activity, oscillate between -2,5 % et +7,5% and reflect an uncertain economic context : expressing a certain pessimism, 35% of wholesale trade professionals surveyed anticipate a drop in their turnover. After the start of 2023 having experienced strong growth at 10,5% on the first quarter, wholesale trade experienced more limited performance, linked to the situation, with an increase of 5% in the second quarter, 2,5% in the third quarter and therefore 3% in the fourth quarter.
An attractiveness plan to overcome recruitment difficulties
Hiring intentions rose slightly again in the fourth quarter of 2023. They concerned 29% of the professionals questioned. They are mainly intended to replace personnel (25 %). However, recruitment difficulties are intensifying and now affect two thirds of the companies concerned. To answer it, the CGF has revealed the outlines of an attractiveness plan whose aim is to raise awareness of career opportunities within wholesale companies and thus attract talent. This plan follows actions already undertaken, in particular in connection with the OPCO AKTO (living rooms, career videos, events…) and will take the form of a national framework agreement with France Travail which will be signed on May 13, in order to carry out actions on the ground throughout France, in connection with the 30 federations members of the CGF and their companies which have real recruitment needs (90,000 according to the latest labor needs survey).
Sectoral disparities that persist
The year 2023 was marked by strong disparities between wholesale trade sectors. The building industry continued to suffer from a drop in the number of construction sites, both in individual and collective accommodation. It shows a decrease of 2,5% of activity in the fourth quarter of 2023 (+0,8 only over the year). After a difficult third trimester, with a drop of 4,5 %, the manufactured products sector recovered in the fourth quarter with growth of 1,5% for the year 2023. Agricultural and food products grew at 10,3 % (7,5% in the fourth quarter), driven by food inflation of 15% which hit households and businesses hard. The healthcare sector experienced stable growth over the year, which stands at 6,7 %. The automotive spare parts sector has, on the other hand, experienced an overall growth of 8,5% for the year 2023 (5% in the fourth quarter). Please note that payment defaults, mentioned by 26% of professionals surveyed in the third quarter, concerned 31% in the fourth quarter.
Tense prospects
In the first quarter of 2024, professionals in the automotive parts sector are the most optimistic, while a stabilization of activity is looming for the manufactured products segment. On the other hand, the situation is worrying for the building sector since turnover should once again suffer a sharp decline at the start of the year. For Philippe Barbier, president of the CGF, “the situation of wholesale trade professionals requires particular vigilance in 2024. The cash flow situation is deteriorating for one in five professionals, and payment deadlines are increasing for almost a third of them. All these reasons call for increased attention in the coming months, even if the wholesale trade is well oriented strategically by the diversity of its sectors”.
