MODERN DEVELOPMENTS IN DISTRIBUTIVE TRADE

Abstract

Distributive trade represents a significant economic activity within national economy that links andmediates between production and consumption. Its importance is commonly indicated by its contribution to thenational GDP and labour force employment. Institutionally, distributive trade is conducted by distributive tradeenterprises that act as intermediaries and facilitators of exchange process between producers and consumers in achannel of distribution. By carrying out their specific channel functions, distributive trade enterprises contributeto the fulfilment of the main purpose of distribution channel as well as of value network as a whole – toefficiently satisfy consumers’ needs by adding value through provision of time, place, possession and formutility. In this way, distributive trade directly interferes and influences people’s standard of living and quality oflife.The purpose of the paper is to present research results on developments in distributive trade in Croatia andto compare them with those of developed European market economies.

Key words: distributive trade, developments, channel of distribution