Retail trade, except of motor vehicles and motorcycles, repair of personal and household goods accounted for almost four-fifths of the establishments

1. A total of 365,083 establishments were covered in the 2003 Annual Survey of Philippine Business and Industry (ASPBI) for Wholesale and Retail Trade; Repair of Motor Vehicles, Motorcycles and Personal and Household Goods Sector. Establishments with an average total employment (ATE) of less than 20 had a total of 360,766 (98.8%) and only 4,317 (1.2%) were large establishments with ATE of 20 or more. (See Table 1 to Table 3)

2. Retail trade, except motor vehicles and motorcycles, repair of personal and household goods (PSIC G52) dominated the industry comprising 289,680 or 79.3 percent of the total establishments in the sector. This was followed by sale, maintenance and repair of motor vehicles and motorcycles; retail of automotive fuel (PSIC G50), which accounted for 40,601 or 11.1 percent. On the other hand, wholesale and commission trade (PSIC G51) recorded the least with 34,802 establishments or 9.5 percent. Figure 1 shows the distribution of establishments by industry division.

   

   About half of the wholesale and retail trade establishments with employment of 20 or more are located in the National Capital Region

3. Regional distribution of wholesale and retail trade establishments with ATE of 20 or more were highly concentrated in the National Capital Region (NCR) where 2,084 establishments or 48.3 percent were located. (See Figure 2)

   

   Retail trade establishments top employer of the sector in 2003

4. The sectors employment record for 2003 reached a total of 1,731,827 workers. The total workforce comprised of 1,214,888 paid employees and 516,938 working owners and unpaid workers (70.2% and 29.8%), respectively.

5. Establishments engaged in retail trade, except of motor vehicles and motorcycles, repair of personal and household goods (PSIC G52) remained the top employer accounting for 1,307,915 workers (75.5%) or more than three-fourths of the total employment in 2003. Figure 3 shows the distribution of employment for wholesale and retail trade; and repair services.

   

6. Wholesale and commission trade (PSIC G51) remained the leading industry in terms of average employment per establishment with seven employees. This exceeded the sector�s average of five workers per establishment. (See Table R1)

   Wholesale and commission trade employees received the highest average monthly compensation of Php 8,633.

7. In 2003, the compensation paid to employees by the sector amounted to Php 77.02 billion or equivalent to an average annual income of Php 63,400.

8. The wholesale and commission trade (PSIC G51) employees receive the highest average monthly compensation of Php 8,633. This also surpassed the sector�s average monthly compensation of Php 5,283. Lowest earners were retail trade workers (PSIC G52) with only Php 4,501. Figure 4 shows the average monthly compensation per employee for wholesale and retail trade; and repair services.

   

   Revenue per peso cost is valued at Php 1.14

9. Total revenue earned by the wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods sector in 2003 amounted to Php 1,446.14 billion. More than half (56.1%) or Php 810.93 billion of the income was generated by retail trade and repair services (PSIC G52). The average sales or revenue per establishment for the sector amounted to Php 3.96 million.

10. Labor productivity, in terms of revenue per worker, registered at Php 0.835 million for the sector. Wholesale and commission trade (PSIC G51) exhibited the highest labor productivity at Php 1.65 million. This was followed by sale, maintenance and repair of motor vehicles and motorcycles; retail sale of automotive fuel (PSIC G50) with Php 1.31 million. On the other hand, retail trade (PSIC G52) registered the lowest at Php 0.62 million. (See Table R1).

11. Operational costs for all establishments in 2003 totaled to Php 1,268.59 billion. Retail trade and repair services (PSIC G52) which registered the biggest income also had the highest share in expenditure amounting to Php 705.67 billion (55.6%). The average cost per establishment amounted to Php 3.47 million.

12. Revenue per peso cost of the wholesale and retail trade; repair services sector in 2003 was Php 1.14. The share in terms of revenue-costs by industry division is shown in Figure 5.

    

13. Another measure of labor productivity is value added per paid employee. It is calculated to average at Php 0.195 million. Likewise by industry division, wholesale and commission trade (PSIC G51) registered the highest labor productivity at Php 0.379 million. Sale, maintenance and repair of motor vehicles and motorcycles, retail sale of automotive fuel (PSIC G50) and retail trade (PSIC G52) followed with Php 0.226 million and Php 0.153 million, respectively. (See Table R1)

    Total Gross Margin amount to over Php 272 billion

14. In 2003, total gross margin for the sector reached Php 272.91 billion. Retail trade, except motor vehicles and motorcycles, repair of personal and household goods (PSIC G52) was the top grosser with Php 155.83 billion, followed by wholesale and retail trade commission (PSIC G51) with Php 85.68 billion. Sale, maintenance and repair of motor vehicles and motorcycles, retail sale of automotive fuel (PSIC G50) had the least share of 11.5 percent (Php 31.40 billion).

    Retail trade contributes more than half of total additions to fixed assets and total change in inventories.

15. Retail trade, except of motor vehicles & motorcycles, repair of personal and household goods (PSIC G52) acquired the biggest share of Php 9.85 billion or 52.6 percent of the total additions to fixed assets for the year 2003.

16. Total change in inventories of the sector in 2003 reached to Php 28.13 billion. More than half (51.9%) or Php 14.59 billion was contributed by the retail trade.

17. Subsidies received by wholesale and retail trade; repair services to aid and develop an industry amounted to Php 508 million. Thirteen out of seventeen industry groups availed the subsidies granted by the government.

     

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    TECHNICAL NOTES

    Scope and Coverage

    The 2003 Annual Survey of Philippine Business and Industry (ASPBI) formerly known as Annual Survey of Establishments (ASE) was conducted to collect information on the structure and trends of economic activities in the entire country for the year 2003. Covered were establishments engaged in economic activities as defined under the 1994 Philippine Standard Industrial Classification (PSIC).

    These establishments were classified into 14 sectors one of which is on Wholesale and retail trade sector; repair of motor vehicles, motorcycles and personal and household goods (Sector G), which covered all establishments, except sari-sari stores with no regularly paid employee and open stalls in public market. The sector is composed of establishments engaged in three industry division namely, sale, maintenance and repair of motor vehicles and motorcycles, retail sale of automotive fuel(G50); wholesale trade and commission trade, except of motor vehicles and motorcycles (G51); and retail trade, except of motor vehicles and motorcycles, repair of personal and household goods (G52).

    All wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods establishments nationwide with average total employment (ATE) of 200 and over were covered on a 100 percent basis and those with ATE of less than 200 were selected using simple random sampling.

    Response Rate

    A total of 4,091 or 92.01% responded out of the 4,446 samples drawn for the sector. Adjustments for non-response were made through imputations.

    Concepts and Definition of Terms

    Establishment - an economic unit, which engages under a single ownership or control, i.e. under a single legal entity, in one, or predominantly one kind of economic activity at a single fixed location.

    Economic activity or business - is the activity of the establishment as classified under the1994 Philippine Standard Industrial Classification (PSIC). The main activity refers to the activity that contributes the biggest or major portion of the gross income or revenue of the establishment.

    Wholesale Trade and Commission Trade Establishment - a store, shop, office, bazaar, arcade or emporium engaged in the resale of new and used goods to retailers, industrial/commercial/institutional/professional users, or to other wholesalers and trading in behalf and on the account of others.

    Retail Trade Establishment - a store, shop, mart, bazaar, sari-sari store, pharmacy, supermarket, grocery, arcade or emporium engaged in the resale of new and used goods to the general public.

    Repair Service Establishment - a shop specializing in the repair of consumer goods like footwear, luggage, handbags and gloves and other leather goods, electrical appliances, and equipment as television and radio receivers, refrigerators, washing machines, ironers, vacuum cleaners, toasters, motor vehicles including motorcycles; watch, clock and jewelry; bicycles; typewriters, cameras, binoculars, musical instruments, umbrellas, etc.

    Total Employment - is the number of persons who worked in or for the establishment as of November 15, 2003.

    Paid employees - are all persons working in the establishments receiving pay as well as those working away from the establishment when paid by and under the control of the establishment. Included are persons working as full-time or part-time and those employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers and workers receiving commission only.

    Unpaid workers - include working owners who do not receive regular pay, apprentices and learners without regular pay, and persons working without regular pay for at least one third of the working time normal to the establishment.

    Salaries and wages - are payments in cash or in kind, prior to deduction for employees contribution to SSS/GSIS, withholding tax, etc. Included are total basic pay, vacation, sick, maternity leave pay, overtime pay, and other benefits.

    Revenue - refers to cash received and receivables for goods sold and services rendered.

    Cost - refers to all expenses excluding compensation incurred during the year whether paid or payable. Valuation should be at market price including taxes and other charges, net of discounts, rebates, returns and allowances. Goods received from and services rendered by other establishment of the same enterprise are valued as though purchased.

    Gross Margin - is the difference between the values of goods sold on own account (including commission received on sale on account of others) during the inquiry period and the gross cost of these goods. The gross cost of goods is the value of purchased of goods intended for sale adjusted for stock change of these goods during the inquiry period.

    Gross additions to fixed assets - refer to the cost of acquisition of fixed assets acquired in 2003 less the value of sales of fixed assets during the year.

    Fixed assets - are physical assets expected to have productive life of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, fixtures, machinery, tool, furniture, office equipment, vehicles, and the like.

    Capital expenditures - refer to the cost of acquisition of fixed assets acquired in 2001 whether or not full payments have been made.

    Change in Inventories - as a derived indicator, is computed as the value of ending inventory less the value of beginning inventory.

    Subsidies - are special grants in the form of financial assistance or tax exemption or tax privilege given by the government to develop an industry or production and to protect it against competition.

    Inventories - refer to stocks of goods owned by or under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation should be at current replacement cost in purchasers price at the indicated dates. Replacement cost is the cost of an item in terms of its present price rather than its original price.

    Value Added - sum of total revenue and fixed assets produced on own account less total costs plus depreciation, interest expense and indirect taxes.

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    Source:   National Statistics Office
                     Manila, Philippines