Retail sale of wearing apparel, except footwear accounts for majority of establishments
The final results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 98,675 establishments in the formal sector of the economy were engaged in Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles nationwide.
Retail sale of wearing apparel, except footwear had the highest number of establishments which accounted 8,095 or 8.2 percent of the total. This was followed by establishments engaged in retail sale of drugs and pharmaceutical goods with 6,475 (6.6%). Establishments engaged in sale of motorcycles and their parts and components came in third with 5,489 or 5.6 percent. Figure 1 shows the percentage distribution of establishments for the sector by industry sub-class in 2015.
Retail selling in department stores hire the highest number of workers
In 2015, the estimated employment of the sector reached 1,008,210 workers, of which 979,250 (97.1%) were paid workers and the rest were working owners and unpaid workers.
The top three industries provided 15.7 percent of the total employment or a total of 158,195 workers to the total work force of the sector. These include the following:
- Retail selling in department stores with 66,484 (6.6%)
- Retail selling in supermarkets with 46,034 (4.6%)
- Retail sale of hardware materials with 45,677 (4.5%)
The average number of workers per establishment was recorded at 10. Retail selling in department stores recorded the highest average at 118 workers, followed by retail selling in hypermarkets at 107 workers. Selling by vending machine came in third posting an average of 80 workers per establishment. Figure 2 presents the distribution of employment of top five industries for the sector by industry sub-class in 2015.
Total compensation reaches PHP156.0 billion
Total compensation paid to all employees reached PHP156.0 billion in 2015, equivalent to an average annual compensation of PHP159.3 thousand per employee.
By industry sub class, retail selling in department stores paid the highest compensation amounting to PHP10.4 billion or 6.7 percent of the total. Wholesale of medicinal and pharmaceutical products was second highest with PHP10.1 billion or 6.4 percent of the total, followed by retail sale of drugs and pharmaceutical goods with PHP9.4 billion or 6.0 percent of the total. Wholesale of embroideries recorded the least compensation with only PHP1.2 million.
Wholesale of medicinal and pharmaceutical products received the highest average annual compensation of PHP390.8 thousand or an average monthly compensation of PHP32,569. On the other hand, workers employed in wholesale of embroideries received the lowest compensation of PHP52.2 thousand or monthly compensation of PHP4,351. Figure 3 shows the average annual compensation of top five industries for the sector by industry sub-class in 2015.
Retail sale in non-specialized stores contribute the largest share in income and expense
The total income generated by the sector amounted to PHP3.8 trillion and the total expense incurred was valued at PHP3.6 trillion in 2015.
Retail selling in supermarkets earned the highest income of PHP291.4 billion (7.6%), followed by sale of passenger motor vehicles with PHP278.3 billion (7.3%). Retail sale of automotive fuel in specialized stores ranked third with PHP275.6 billion (7.2%).
Concurrently, retail selling in supermarkets incurred the largest expense at PHP279.7 billion (7.8%). Sale of passenger motor vehicles and retail sale of automotive fuel in specialized stores spent PHP265.5 billion (7.4%) and PHP255.8 billion (7.1%), respectively. On the other hand, wholesale of embroideries industry was marked with the lowest values in revenue (PHP6.3 million) and expense (PHP6.0 million). Figure 4 below presents the top five industry in terms of income and expense by industry sub-class in 2015.
Income- expense ratio equivalent to 1.06
The income per peso expense in 2015 generated a ratio of 1.06. Among industries, wholesale on a fee or contract basis, of miscellaneous consumer goods posted the highest value with 1.34, meaning for every peso value spent, PHP1.34 income was generated, Wholesale on a fee or contract basis, of food, beverages and tobacco and door-to-door retailing followed with 1.29 income-expense ratio apiece. On the other hand, wholesale of radio and television including parts and accessories and retail sale via internet recorded each a thin ratio of 1.00.
Gross margin reaches PHP660.0 billion
Gross margin (trade/profit margin) of the sector amounted to PHP660.0 billion in 2015. Retail selling in supermarkets reached PHP41.8 billion (6.3%), wholesale of medicinal and pharmaceutical products, PHP41.0 billion (6.2%), and retail selling in department stores, PHP37.1 billion (5.6%). Wholesale of embroideries produced the lowest profit margin with only PHP2.4 million. Figure 5 shows the gross margin of the five industries for the sector by industry sub-class in 2015.
Value added amounts to PHP430.6 billion
Total Value added generated was estimated at PHP430.6 billion in 2015.
Top three industries produced 17.3 percent of the total value added in 2015. These were: retail sale of automotive fuel in specialized stores with PHP26.4 billion (6.1%), wholesale of solid, liquid and gaseous fuels and related products with PHP24.6 billion (5.7%) and retail selling in supermarkets with PHP23.9 billion (5.5%). Figure 6 shows the value added for the top five industries for the sector by industry sub-class in 2015.
Wholesale of solid, liquid and gaseous fuels and related products most labor productive industry in 2015
Value added per employee a measure of labor productivity was estimated at PHP427.1 thousand. Wholesale of solid, liquid and gaseous fuels and related products industry recorded the highest labor productivity among industries, with PHP2.7 million while retail sale of nipa, bamboo and rattan generated the lowest productivity with PHP36.8 thousand.
Gross additions to fixed assets accumulate to PHP24.8 billion
Acquisition of fixed assets by the sector in 2015 summed up to PHP24.8 billion. (Gross additions to fixed assets, is defined as capital expenditures less sale of fixed assets). Retail selling in department stores acquired the biggest gross addition to fixed assets amounting to PHP3.0 billion (12.3%), followed by wholesale of solid, liquid and gaseous fuels and related products and sale of passenger motor vehicles with PHP2.0 billion (7.9%) and PhP1.6 billion (6.3%), respectively.
Sale of passenger motor vehicles industry records highest inventory
Total change in inventories (ending less beginning inventory) amounted to PHP47.8 billion in 2015. Sale of passenger motor vehicles had the highest value of stocks amounting to PHP5.0 billion. This was followed by wholesale of rice, corn and other cereals with PHP4.3 billion and sale of motorcycles and their parts and components with PHP4.2 billion.
Government grants PHP3.8 billion worth of subsidy in 2015
Total subsidy received from the government in 2015 amounted to PHP3.8 billion, Wholesale of rice, corn and other cereals availed the highest subsidy amounting to PHP3.2 billion (85.8%). Retail selling in groceries followed with PHP446.6 million (11.8%). The remaining subsidy was received by wholesale of palay, corn (unmilled) and other grains (PHP86.6 million) and wholesale on a fee or contract basis of other products (PHP 1.5 million).
Sales from e-commerce reach PHP2.6 billion
In 2015 sales from e-commerce transactions reached PHP2.6 billion accounting for merely 0.07 percent of total income. By industry sub-class, the top three industries accounted for 77.6 percent of the total e-commerce transaction or 0.05 percent of the total income. Retail sale via internet posted the highest sales through e-commerce with PHP1.0 billion (39.5%), followed by retail sale of computers with PHP767.2 million (30.0%) and retail sale of motor vehicles tires and batteries with PHP208.9 million (8.2%).
This Special Release presents the final 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 all establishments in the formal sector of economy.
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 2015 Survey on Information and Communication Technology (SICT) was undertaken as a rider to this survey
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 sub-class or 5-digit 2009 Philippine Standard Industrial Classification (PSIC) at the national..
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 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.
For Establishments with TE of Less Than 20
a. Non-Certainty Stratum
The estimate of the total of a characteristic for the non-certainty employment stratum TE less than 20 in the sth industry domain was
s = denotes the non-certainty employment strata in TE of less than 20
Xsj = value of the jth establishment in non-certainty employment stratum in TE of less than 20 in Sth industry domain
j = 1,2,3..., ns establishments
Wsj = weight of the jth establishment in the non-certainty employment stratum of less than 20 in the sth industry domain
Ns = total number of establishments in the non-certainty employment stratum in TE of less than 20 in the sth industry domain
ns = number of sample establishments in the non-certainty employment stratum in TE of less than 20 in sth domain
b. Certainty Stratum
The total of a characteristic for the certainty employment stratum in the Cth industry domain was
c = denotes the certainty employment strata in TE of less than 20 in the cth industry
xcj = value of the jth establishment in the certainty employment strata in TE of less than 20 in the cth industry domain
j = 1,2,3,..., mc establishments
mc = number of establishments in the certainty employment strata in TE of less than 20 in the cth industry domain
c. Total Estimate for TE of Less Than 20
For all sections except B and C, national level estimates of the total of a characteristicfor the industry domain was obtain by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,
where d denotes the industry domain.
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 TE of 20 and over for 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 in TE of 20 and over for an industry domain in each region
nsp = number of sample establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region
b. Certainty Stratum (Establishments under the following: Section B and D, 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 non-certainty employment strata in TE of 20 and over for an industry domain in 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 estimated for all employment strata (non-certainty and certainty) in the same industry domain,
where dp denotes the industry domains in each region
National level estimate of the the characteristic 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 factors, and (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 was 92.51 percent (6,177 out of 6,677 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 188 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 control which engaged in one or predominantly one kind of economic 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 or 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.
Value Added is gross output less intermediate input. Gross output for Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles Activities sector is the sum of the 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 (less rent expense for land); goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; and other expense.
Change in inventories is equivalent to the value of inventories at the end of the year less the value of inventories at the beginning of the year.
E-commerce refers to the selling of products or services over electronic systems such as Internet Protocol-based networks and other computer networks. Electronic Data Interchange (EDI) network, or other on-line system. Excluded are orders received from telephone, facsimile and e-mails.