THE IMPORTANCE AND DEVELOPMENT FACTORS OF RETAIL BUSINESS LOGISTICS - THE CASE OF THE REPUBLIC OF CROATIA

Abstract

The motive for this work is a mismatch between the significance of trade (especially retail trade) according to its share in the number of employees, in the turnover, etc. in the overall economy, and its importance as a driver of supply chains and economic development in the Republic of Croatia. In the last twenty years there is an evident development of retail companies in quantitative terms (increase of sales area), but the insufficient development in qualitative terms of using modern technical and technological achievements and connectivity in the regional value adding chains. Based on available literature, the paper provides an indication of the importance and factors of development of business logistics of retail companies. Developing of retail supply chains have gained attention to the importance of retail in the management of economic processes. This paper analyzes the available statistical data (for the period of the last twenty years) on the movement of the importance of retailing in the Republic of Croatia (on the basis of its share in the overall economy) and information relating to the development factors of retail business logistics (choice of location, format of retail business units, supplier structure, market and competition, technical and technological environment, political and legal factors, etc.). Based on the importance of logistics for retail companies in national economy, the aim of this paper is to evaluate the importance of retail and the role of retail companies in the development of the national economy of the Republic of Croatia. The aim of this study are knowledge of new logistical viewpoints to the importance of retailing in the (un)successful development of the national economy of the Republic of Croatian, and respectively regional value adding chains. The work has the purpose to point out the importance of business logistics for the success of the retailer, but also the significance of the impact of internal and external factors on the development of its logistics business. Limitations of this study are related to recent statistics data. In addition, there are further more specific research needs of individual supply chains.

Key words: retail company, business logistics, supply chain, format of retail business unit, Republic of Croatia