Retail sale in non-specialized stores operate most large establishments of the sector
The preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) accounted a total of 8,332 establishments with total employment (TE) of 20 and over, engaged in Wholesale and Retail trade; Repair of Motor Vehicles and Motorcycles sector.
Among industry groups as shown in Figure 1, retail sale in non-specialized stores registered the highest number of establishments, accounting 1,459 or 17.5 percent of the total. Retail sale of other household equipment in specialized store ranked second with 1,116 or 13.4 percent and establishments engaged in retail sale of other goods in specialized stores came in third with 1,045 or 12.5 percent.
Establishments with TE of 20 & over was concentrated in NCR with 3,558(42.7%). It was followed by neighboring CALABARZON with only 849(10.2%) and Central Luzon with 656 (7.9%) respectively. ARMM had the least number with 10 establishments among regions.
Retail sale in non-specialized stores employ the highest labor in 2015
Labor for the sector listed a total of 462,553 workers of which 461,254 (99.7%) were paid workers and the rest were working owners and unpaid workers.
Retail sale in non-specialized stores with 131,573 workers (28.4%); wholesale of household goods with 57,772 workers (12.5%); and wholesale of food, beverages and tobacco with 45,988 (9.9%) have provided half of the total employment (50.9%) or 235,333 workers to the labor force.
NCR was the top employer among regions with 216,553 workers or 46.8 percent, followed by CALABARZON with 41,127 employees or 8.9 percent. Central Visayas came next with 37,234 workers or 8.0 percent. On the other hand, ARMM recorded the least at 364 workers.
The average number of workers per establishment of the sector was computed at 56. Retail trade not in stores, stalls or markets had the highest level at an average of 92, followed by retail sale in non-specialized stores at 90 and sale of motor vehicles at 76. Maintenance and repair of motor vehicles and retail sale of automotive fuel in specialized stores was down to an average of 26.
Labor payments level up to PHP94.0 billion
The Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles sector made a total disbursement worth PHP94.0 billion in 2015, equivalent to an average annual compensation of PHP203.7 thousand per employee.
By industry group, retail sale in non-specialized stores spent the highest compensation expenditures amounting to PHP20.4 billion or 21.7 percent of the total. Wholesale of household goods was second with PHP17.4 billion or 18.5 percent. And third was wholesale of food, beverages and tobacco with PHP9.3 billion (9.9 percent). Non-specialized wholesale trade recorded the lowest payments of PHP99.4 million (0.1%). Figure 3 shows the top seven industries on average annual compensation.
Across regions, employers in NCR paid out the biggest share in total compensation amounting to PHP58.6 billion (62.4%). CALABARZON placed second providing an amount of PHP7.5 billion (8.0%) while businesses in Central Visayas region disbursed PHP5.5 billion (5.8%).Workers in ARMM received the lowest compensation of PHP31.3 million.
Workers of wholesale of household goods are highest-paid employees in 2015
Workers in wholesale of household goods bagged the highest average annual compensation of PHP301.3 thousand or an average monthly compensation of PHP25,112. On the other hand, workers employed in wholesale of agricultural raw materials and live animals received the lowest payment of PHP134.3 thousand or monthly compensation of PHP11,193. Figure 3 shows the top seven leading industries by average annual compensation.
At the regional level, employers from NCR paid its employees the highest average annual compensation in the amount of PHP271.0 thousand or an average of PHP22,582 per month while employers from ARMM gave the lowest payments of PHP86.8 thousand or an average of PHP7,232 per month.
Retail sale in non-specialized stores accounts the largest income and expense
Total income for the sector earned an amount of PHP2.7 trillion and incurred a total expense of PHP2.5 trillion in 2015.
Retail sale in non-specialized stores earned the highest income of PHP582.5 billion (21.9%), followed by wholesale of household goods with PHP356.8 billion (13.4%). Wholesale of food, beverages and tobacco ranked third with PHP322.6 billion (12.1%) return. At the same time, retail sale in non-specialized stores had incurred the largest expenditures at PHP561.2 billion (22.1%). Wholesale of household goods and wholesale of food, beverages and tobacco spent PHP335.6 billion (13.2%) and PHP309.6 billion (12.2%) overheads respectively.
On the other hand, non-specialized wholesale trade earned the lowest income (PHP2.6 billion) and incurred the lowest expense (PHP2.5 billion). Figure 4 below shows the top five industry groups in terms of income and expense.
By region, establishments in NCR earned more than half (54.5%) of the total income of the sector amounting to PHP1.5 trillion. Other high-income regions were CALABARZON with PHP264.9 billion (9.9%), Central Luzon with PHP177.0 billion (6.6%) and Central Visayas with PHP168.0 billion (6.3%). Likewise, establishments in NCR incurred highest expense amounting to PHP1.4 trillion (54.6%). Other regions with highest expense reported were also CALABARZON PHP252.8 billion (9.9%), Central Luzon PHP168.0 billion (6.6%) and Central Visayas PHP158.6 billion (6.2%).
Income- expense ratio yields a 1.05 turnover
A ratio of 1.05 income per peso expense was generated by the sector in 2015. Maintenance and repair of motor vehicles exceeded the average ratio with 1.14 among industries.
Wholesale on a fee or contract basis have trailed with 1.10 income-expense ratio. Sale, maintenance and repair of motorcycles and related parts and accessories and retail sale of cultural and recreation goods in specialized stores have recorded 1.09 ratio per piece.
At the regional level, Central Visayas, Eastern Visayas, Davao Region and Negros Island Region posted together an income-expense ratio of 1.06 while majority of the region stayed at the average of 1.05.
Gross margin amounts to PHP425.7 billion
The income and expense of the sector, produced a gross margin (output or trade margin) amounting to PHP425.7 billion. The top three industry groups that hit more than half (51.4%) of the total gross margin of the section were:
- Retail sale in non-specialized stores with PHP91.8 billion, (21.6%),
- Wholesale of household goods with PHP77.0 billion, (18.1%), and
- Wholesale of food, beverages and tobacco with PHP50.4 billion, (11.8%)
The top grosser in the regional level were NCR with 252.6 billion (59.3%), CALABARZON with PHP39.8 billion (9.3%), Central Visayas with PHP26.7 billion (6.3%) and Central Luzon with PHP25.6 billion (6.0%).
Value added amounts to PHP263.4 billion
The value added generated by Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles sector was estimated at PHP263.4 billion in 2015.
Top three industries that contributed almost half (47.8%) to the total value added of the sector were retail sale in non-specialized stores with PHP51.8 billion (19.7%), Wholesale of household goods with PHP43.4 billion (16.5%) and wholesale of food, beverages and tobacco with PHP30.8 billion (11.7%).
At the regional level, NCR contributed the largest value added of PHP149.1 billion (56.5%).
Other specialized wholesale industry has the highest labor productivity
Value added per employee which measures the labor productivity of the sector, was estimated at PHP569.4 thousand. Sale of motor vehicles recorded the highest among industries with PHP1,031.9 thousand while non-specialized wholesale trade made the lowest with PHP307.6 thousand. Workers from NCR were the most productive among regions with PHP686.9 thousand.
Gross additions to fixed assets accumulates to PHP19.4 billion
The gross additions to fixed assets (capital expenditures less sale of fixed assets) of the sector in 2015 was valued at PHP19.4 billion. Retail sale in non-specialized stores amassed the biggest acquisition of fixed assets with PHP5.2 billion (27.0%) while non-specialized wholesale trade had the least with PHP1.8 million. Among regions, NCR recorded the highest additions amounting to PHP8.0 billion (40.9%) and ARMM has zero gross addition.
Total change in inventories amount to PHP32.1 billion
Total change in inventories (defined as ending less beginning inventory) of the sector amounted to PHP32.1 billion in 2015. Sale of motor vehicles made highest list of stocks comprising 22.4% or PHP7.2 billion of the total. Wholesale of food, beverages and tobacco and retail sale of other household equipment in specialized stores have PHP6.8 billion (21.3%) and PHP4.3 billion (13.3%) apiece.
Among regions, NCR had the highest share in change in inventories at PHP18.1 billion (56.5%) while ARMM recorded the lowest of PHP192.8 million (0.6%).
Government grants PHP3.3 billion subsidies
Subsidies are special grants received from the government in the form of financial assistance or tax exemption or tax privilege to aid and develop an industry. Total subsidies received from the government amounted to PHP3.3 billion in 2015.
Wholesale of food, beverages and tobacco industry and retail sale in non-specialized stores received PHP2.9 billion and PHP381.5 million from the government, respectively.
Sales from e-commerce reaches PHP4.6 billion
Transactions from e-commerce (sales) were recorded at PHP4.6 billion. Ten industries posted e-commerce transactions and five made over a hundred million orders namely:
- Retail trade not in stores, stalls or markets with PHP3.0 billion (66.0%),
- Retail sale of information and communications equipment in specialized stores with PHP825.4 million (17.9%),
- Wholesale of machinery, equipment and supplies with PHP248.8 million (5.4%),
- Sale of motor vehicle parts and accessories with PHP223.9 million (4.9%), and
- Wholesale of household goods with PHP196.7 million (4.3%).
This Special Release presents the preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) for the Wholesale and Retail trade; Repair of Motor Vehicles and Motorcycles sector for establishments with total employment of 20 and over.
The 2015 ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey provide information on the levels, structure, performance, and trends of economic activities of the formal sector in the entire country for the year 2015.
The survey was conducted nationwide in 2016 with the year 2015 as the reference period of data, except for employment which is as of November 15, 2015.
Establishment Data Management System (EDMS) was still utilized in the decentralized processing of 2015 ASPBI questionnaires in the province as well as the online accomplishment of questionnaire through the PSA website.
Data are presented by industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC) at the national and regional level.
The conduct of the 2015 ASPBI is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013 - Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.
Scope and Coverage
The 2015 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 PSIC, namely:
- Agriculture, Forestry and Fishing (A)
- Mining and Quarrying (B)
- Manufacturing (C)
- Electricity, Gas, Steam, and Air Conditioning Supply (D)
- Water Supply; Sewerage, Waste Management and Remediation Activities (E)
- Construction (F)
- Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (G)
- Transportation and Storage (H)
- Accommodation and Food Service Activities (I)
- Information and Communication (J)
- Financial and Insurance Activities (K)
- Real Estate Activities (L)
- Professional, Scientific and Technical Activities (M)
- Administrative and Support Service Activities (N)
- Education (P)
- Human Health and Social Work Activities (Q)
- Arts, Entertainment and Recreation (R)
- Other Service Activities (S)
The survey was confined to the formal sector of the economy, which consists of the following:
- Corporations and partnerships
- Cooperatives and foundations
- Single proprietorship with employment of 10 and over
- Single proprietorship with branches
Hence, the 2015 ASPBI covered only the following economic units:
- All establishments with total employment (TE) of 10 or more, and;
- All establishments with TE of less than 10, except those establishments with Legal Organization = 1 (single proprietorship) and Economic Organization = 1 (single establishment), that are engaged in economic activities classified according to the 2009 Philippine Standard Industrial Classification (PSIC).
Frame of Establishments
The frame for the 2015 ASPBI was extracted from the 2015 List of Establishments (LE). The estimated number of establishments in operation in the country in 2015 totaled to 909,786. About 259,386 establishments (29.0% of the total establishments) belong to the formal sector of which 223,821 (86.3%) comprised the establishment frame. This frame was used to draw the sample establishments for the survey.
Unit of Enumeration
The unit of enumeration for the 2015 ASPBI is the establishment.
An establishment is defined as an economic unit, which engages, under a single ownership or control, i.e. under a single entity, in one or predominantly one kind of economic activity at a single fixed location.
Classification of Establishments
An establishment is categorized by its economic organization, legal organization, industrial classification, employment size and geographic location.
Economic Organization refers to the organizational structure or role of the establishment in the organization. An establishment may be single establishment, branch, establishment and main office with branches elsewhere, main office only, and ancillary unit other than main office.
Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment may be single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, and cooperative.
Industrial Classification of an economic unit was determined by the activity from which it derives its major income or revenue. The 2009 PSIC which was approved for adoption by government agencies and instrumentalities through NSCB Resolution No. 2 Series 2010 was utilized to classify economic units according to their economic activities.
Size of an establishment is determined by its total employment (TE) as of specific date. Total employment (TE) refers to the total number of persons who work in or for the establishment.
This includes paid employees, working owners, unpaid workers and all employees who work full-time or part-time including seasonal workers. Included also are persons on short term leave such as those on sick, vacation or annual leaves and on strike.
Geographic Classification refers to the grouping of establishments by geographic area using the Philippine Standard Geographic Code (PSGC) classification. The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities, and barangays in the Philippines. The PSGC as of December 31, 2015 was used for the 2015 ASPBI.
Selection of sample establishment for the 2015 ASPBI was done using stratified systematic sampling with 5-digit PSIC serving as industry strata and employment size as the second stratification variable.
For establishments with TE of 20 and over, the 18 administrative regions serve as the geographic domains while the 5-digit level of the 2009 PSIC serves as the industry domains.
Estimation Procedure for Establishments with TE of 20 and Over
a. Non-Certainty Stratum (strata of TE 20 to 49 and TE 50 to 99) for Sections A,C,E,F,G, H, I, J, K, L, M, N, P, Q, R and S.
The estimate of the total of a characteristic for the non-certainty employment strata in an industry domain in each region
s = denotes the non-certainty employment strata in TE of 20 to 49 and TE 50 TO 99
p = 1, 2,..., 18 regions (geographic domains)
Xspj = value of the jthestablishment in the non-certainty employment strata with TE of 20 to 49 and TE 50 to 99 for an industry domain in each region
j = 1,2,3,..., nsp establishments
Wspj = weight of the jth establishment in the non-certainty employment strata with TE of 20 to 49 and TE 50 to 99 for an industry domain in each region
Nsp = total number of establishments in the non-certainty employment strata with TE of 20 to 49 and TE 50 to 99 for an industry domain in each region
nsp = number of sample establishments in the non-certainty employment strata in TE of 20 to 49 and TE 50 to 99 for an industry domain in each region
b. Certainty Stratum (Establishments under the following: Section B, D and J, ICT core industries, BPM industries, GOCC's and with TE 100 and over)
c = denotes the certainty employment strata in TE of 20 and over
p = 1,2,...18 regions (geographic domains)
Xcpj = value of the jthestablishment in the certainty employment strata in TE of 20 and over in an industry domain within each region
j = 1,2,3,..., mcp establishments
mcp = number of establishments in the certainty employment strata in TE of 20 and over in an industry domain within each region
c. Total Estimate for TE of 20 and Over
The estimate of the total of a characteristic for the industry domain in each region (geopraphic domain) was obtained by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,
where dp denotes the industry domains in each region
National level estimates of the the characteristics by industry domain were obtained by aggregating separately the estimates for the particular industry domain from all the regions,
Weight Adjusment Factor for Non-Response
To account for non-response in the non-certainty strata, the adjusment factor (n/n') was multipled with the sampling weight (W) of each of the sampling unit. The sampling weight which is defined as N/n was recomputed as
Thus, the adjusted weight (W'spj) for the non-certainty employment stratum for the industry domain with TE 20-99 was
Nsp = total number of establishments in the non-certainty employment stratum with TE 20-99 for the industry domain within each geographic domain (region)
n'sp = number of responding establishments in the non-certainty employment stratum with TE of 20-99 for the industry domain within each geographic domain (region)
Response rate for Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles sector for establishments with TE of 20 and over was 93.29 percent (4,022 out of 4,311 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 31 establishments responded online.
Reports of the remaining non-reporting establishments were taken from other available administrative data sources and financial statements from Securities and Exchange Commission (SEC). However, there were establishments which were found to be duplicates, out-of-scope and out of business in 2015.
Limitation of Data
Only the formal sector was covered in the survey.
Concepts and Definitions of Terms
Establishment is defined as an economic unit under a single ownership or control which engages in one or predominantly one kind of activity at a single fixed location.
Economic activity is the establishment’s source of income. If the establishment is engaged in several activities, its main economic activity is that which earns the biggest income or revenue.
Total employment is the number of persons who worked in for the establishment as of November 15, 2015.
Paid employees are all persons working in the establishment and receiving pay, as well as those working away from the establishment paid by and under the control of the establishment. Included are all employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers, receiving pure commissions only, and workers on indefinite leave.
Income or Revenue refers to cash received and receivables for goods/products and by-products sold and services rendered. Valuation is at producer prices (ex-establishment) net of discounts and allowances, including duties and taxes but excluding subsidies.
Expense refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis. Valuation is at purchaser price including taxes and other charges, net of rebates, returns and allowances. Goods and services received by the establishment from other establishments of the same enterprise are valued as though purchased.
Compensation is the sum of salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer in behalf of the employees such as contribution to SSS/GSIS, ECC, PhilHealth, Pag-ibig, etc.
Salaries and wages are payments in cash or in kind to all employees, prior to deductions for employee’s contributions to SSS/GSIS, withholding tax, etc. Included are total basic pay, overtime pay and other benefits.
Valued added is gross output less intermediate input. Gross output for Wholesale and Retail trade; Repair of Motor Vehicles and Motorcycles sector is the sum of total income (less interest income, rent income from land, dividend income, royalty income and franchise income), capital expenditures of fixed assets produced on own account, and change in inventories. Intermediate input is equal to the sum of the following expense items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; industrial services done by others; non-industrial services done by others; goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; and other expense.