Germany: Catering as future market for wholesale dealers

The German wholesale markets are in the process of changing. The number of wholesale market companies is decreasing and the traffic of clients on the wholesale market terrains is dwindling. Mustafa Karahan of Maxime BVBA, located in Essen, sees the problem in the general economic situation, with the increasing number of payment defaults through dummy corporations and the growing influence of the large supermarket chains: “ In the future it will become increasingly difficult for wholesale dealers.”

Managing director Mustafa Karahan of Maxime BVBA

Winter business went quieter than usual
“Great sharks, small fish”, that's how Mustafa Karahan describes the current situation. During the first calendar quarter, his revenue has shrunk by around 40 percent: “Business was extremely quiet in the first quarter. Especially in January and February.” So-called dummy companies pose a big problem for the wholesale dealer: “In the meantime, there are too many dummy companies. They exist for two to three months on the wholesale market, buy wares and supply customers, and then they close down. By that time, they have often accumulated a heap of debt worth thousands of Euro.“ The wholesale dealer reports that he has fallen victim to such dummy companies himself and that he had to press charges against his former customers. In his opinion there is only one solution for this problem: “The wholesale markets and the management need to inform themselves better about their wholesale market companies in advance, and not include every one of them.”

Strong competition
The competition and the economic situation don't make it easy for the wholesale dealers either. “We as wholesale dealers cannot keep up with the large supermarket chains”, Karahan explains. “We are already in the situation where we have paid 1.20 Euro for a kilo of bananas, while they are being offered for 77 cents in food retail. How are we supposed to keep up with that?”

The trend is moving towards catering
To survive on the wholesale, Karahan especially sees the option to develop further: “As a small retailer, you have to look ahead and develop and adapt to the market. A healthy financial base and educated employees are of particular importance here.” The business man sees the future for wholesale retailers mostly in the field of catering. “The trend is moving towards a place where people are increasingly eating out. Therefore, catering will become increasingly important as a customer for the wholesale markets.”

Mustafa Karahan
Maxime BVBA
Lützowstraße 30, 45141 Essen
Tel. +49 (0)201 43666714
info@maximebvba.de
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