Retail sale in non-specialized stores industry operates the most number of establishments
The preliminary results of the Annual Survey of Philippine Business and Industry (ASPBI) recorded a total of 8,150 establishments with total employment (TE) of 20 and over in the formal sector of the economy that were engaged in wholesale and retail trade; repair of motor vehicles and motorcycles in 2017. This number decreased by 4.3 percent compared with the 8,523 establishments in 2016.
Among the industries, retail sale in non-specialized stores reported the highest number of establishments of 1,516 or 18.6 percent of the total number of establishments for the sector. Establishments engaged in retail sale of other household equipment in specialized stores ranked second with 1,095 establishments (13.4%) and retail sale of other goods in specialized stores came third with 1,014 establishments (12.4%).
Figure 1 presents the percentage distribution of the number of establishments with TE of 20 and over for the sector by industry group in 2017.
The regional distribution of establishments for the sector showed that those with TE of 20 and over were mostly concentrated in the National Capital Region (NCR) with 3,357 establishments (41.2%). This was followed by its neighboring region, CALABARZON with 855 establishments (10.5%). Central Visayas placed third with 699 establishments (8.6%).
Retail sale in non-specialized stores industry employs the highest
The sector’s total employment in 2017 was estimated at 496,353 workers, a decrease of 0.04 percent compared with the 496,556 workers in 2016. Paid workers comprised of 495,256 (99.8%) while the rest were working owners and unpaid workers.
Among the industries, retail sales in non-specialized stores with 141,787 workers (28.6%) hired the most number of workers. On the other hand, non-specialized wholesale trade registered the least number of 808 workers.
Figure 2 presents the distribution of employment for establishments with TE of 20 and over for the sector by industry group in 2017.
NCR led the regions in terms of employment, hiring 228,149 workers or 46.0 percent of the total work force. This was followed by CALABARZON with 44,541 workers (9.0%). Central Visayas with 43,959 workers (8.9%) ranked third. On the other hand, ARMM recorded the least number of workers of 443 (0.1%).
The average number of workers for establishment with TE of 20 and over for the sector was posted at 61 in 2017, an increase of 4.5 percent from the 58 average workers per establishment in 2016. Retail trade not in stores, stalls or markets had the highest average of 106 workers per establishment.
By region, NCR had the highest average of 68 workers per establishment while the lowest average was registered in Cagayan Valley at 46 workers per establishment.
Total compensation increases 10.7 percent
The total compensation paid by establishments with TE of 20 and over was PHP105.2 billion in 2017, translating to an average annual compensation of PHP212.4 thousand per paid employee. Compared with the average annual compensation of PHP192.0 thousand per paid employee in 2016, the average pay in 2017 increased by 10.7 percent.
Among the industries, non-specialized wholesale trade recorded the highest average annual compensation of PHP380.4 thousand per paid employee. On the other hand, sale, maintenance and repair of motorcycles and related parts and accessories received the lowest average annual compensation of PHP140.0 thousand per paid employee.
Figure 3 shows the average annual compensation of paid employees of the top five industries of the sector for establishments with TE of 20 and over by industry group in 2017.
At the regional level, NCR registered the highest average annual compensation of PHP275.8 thousand per paid employee while ARMM recorded the lowest at PHP70.6 thousand per paid employee.
Retail sale in non-specialized stores industry accounts the highest share to total income and expense
The sector generated a total income of PHP3.2 trillion in 2017, an increase of 15.2 percent compared with the PHP2.8 trillion income in 2016. On the other hand, total expense incurred by the sector reached PHP3.0 trillion, higher by 15.9 percent from the PHP2.6 trillion expense in 2016.
Among the industries, retail sale in non-specialized stores recorded the highest income of PHP684.4 billion (21.5%) and highest expense of PHP659.7 billion (21.6%). On the contrary, non-specialized wholesale trade had the lowest income amounting to PHP4.6 billion (0.1%) and lowest expense of PHP4.4 billion (0.1%).
Figure 4 shows the top five industry groups of the sector for establishments in terms of income and expense for establishments with TE of 20 and over by industry group in 2017.
Across the country, NCR earned the highest income of PHP1.7 trillion or more than half (54.6%) of the total income for the sector and incurred the highest expense of PHP1.7 trillion (54.3%). This was followed by CALABARZON with PHP315.7 billion income (9.9%) and PHP306.1 billion expense (10.0%), and Central Visayas with PHP226.3 billion income (7.1%) and PHP218.2 billion expense (7.2%).
Income-expense ration yields 1.04 turnover
The income per peso expense generated by the sector was 1.04 in 2017, lower by 0.6 percent from the income per peso expense of 1.05 in 2016.
Among the industries, wholesale of agricultural raw materials and live animals, and retail sale of other household equipment in specialized stores recorded the highest income per peso expense, each at 1.09.
By region, five exceeded the average ratio at the national level. These were Northern Mindanao and Davao Region, each with an income per peso expense of 1.06; NCR, Western Visayas, and CARAGA registered an income per peso expense of 1.05 each.
Gross margin amounts to PHP470.4 billion
The sector produced a gross margin (output or trade margin) amounting to PHP470.4 billion in 2017. This figure was higher by 8.1 percent than the PHP435.0 billion gross margin in 2016. The top three industry groups that contributed more than half (52.7%) to the total gross margin of the sector were:
- Retail sale in non-specialized stores, PHP108.0 billion (23.0%),
- Wholesale of household goods, PHP94.5 billion (20.1%);
- Retail sale of other household equipment in specialized stores, PHP45.5 billion, (9.7%).
Figure 5 shows the distribution of gross margin of the top five industries of the sector for establishments with TE of 20 and over by industry group in 2017.
The top four regions in terms of gross margin were NCR with PHP280.5 billion (59.6%), CALABARZON with PHP39.2 billion (8.3%), Central Visayas with PHP30.3 billion (6.4%) and Central Luzon with PHP28.1 billion (6.0%).
Value added amounts up to PHP303.8 billion
The total value added generated by the sector for establishments with TE of 20 and over was estimated at PHP303.8 billion in 2017, an increase of 9.6 percent from the PHP277.1 billion in 2016.
The three industries that contributed half (50.2%) to the total value added of the sector were retail sale in non-specialized stores with PHP65.0 (21.4%), wholesale of household goods with PHP58.3 billion (19.2%) and retail sale of other household equipment in specialized stores with PHP29.2 billion (9.6%).
At the regional level, NCR contributed the largest share to total value added worth PHP177.4 billion or 58.4 percent.
Wholesale of agriculture raw materials and live animals industry records the highest labor productivity
Labor productivity was estimated at PHP612.1 thousand per worker in 2017. This figure was higher by 9.6 percent compared with the labor productivity of PHP558.1 thousand in 2016.
Among the industries, wholesale of agricultural raw materials and live animals recorded the highest labor productivity of PHP1,023.1 thousand per worker while sale, maintenance and repair of motorcycles and related parts and accessories had the lowest labor productivity of PHP267.7 thousand per worker.
Among the regions, NCR emerged as the most labor productive with labor productivity of PHP777.5 thousand per worker.
Figure 6 shows the distribution of labor productivity of the top five industries of the sector for establishments with TE of 20 and over by industry group in 2017.
Government grants PHP6.9 billion subsidies
Total subsidies received from the government amounted to PHP6.9 billion in 2017, an increase of 895.9 percent compared with the PHP691.6 million subsidies in the previous year.
Only two industries of the sector were provided with subsidies by the government in 2017. These were wholesale of food, beverages and tobacco; and wholesale of agricultural raw materials and live animals receiving an amount of PHP6.9 billion and PHP1.2 million, respectively.
By region, NCR received the biggest share of subsidy from the government amounting to PHP1.4 billion while CAR received the lowest, PHP115.8 million.
Sales from e-commerce reaches PHP5.6 billion
Sales from e-commerce transactions for the sector in 2017 amounted to PHP5.6 billion, an increase of 207.9 percent compared with the PHP1.8 billion sales in 2016.
Among the industries, retail trade not in stores, stalls or markets recorded the highest contribution to e-commerce sales amounting to PHP4.4 billion or 78.9 percent of the total. Other industries with recorded sales worth over a hundred million pesos were as follows:
- Retail sale of other household equipment in specialized stores, PHP652.1 million (11.7%)
- Wholesale of machinery, equipment and supplies, PHP246.1 million (4.4%)
- Retail sale in non-specialized stores, PHP174.2 million (3.1%)
Among the regions, NCR posted the highest e-commerce sales of PHP5.3 billion in 2017. Central Luzon, CALABARZON and Central Visayas followed with PHP174.2 million, PHP66.4 million and PHP19.6 million sales, respectively.
(Sgd.) ROSALINDA P. BAUTISTA
Deputy National Statistician
Sectoral Statistics Office
This Special Release presents the preliminary results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) for Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles with total employment of 20 and over.
The 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 in 2017.
The survey was conducted nationwide in 2018 with 2017 as the reference period of data, except for employment which is as of 15 November 2017.
The Establishment Data Management System (EDMS) was utilized in the decentralized processing of survey returns in the provinces as well as in the online accomplishment of questionnaires through the PSA website.
Data are presented by industry group or 3-digit of the 2009 Philippine Standard Industrial Classification (PSIC) at the national and regional level.
The conduct of the 2017 ASPBI is authorized under Republic Act 10625, known as the Philippine Statistical Act of 2013, which mandates reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.
Scope and Coverage
The 2017 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 partnership
• Cooperatives and foundations
• Single proprietorship with employment of 10 and over
• Single proprietorships with branches
Hence, the 2017 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 2017 ASPBI was extracted from the 2017 List of Establishments (LE). The estimated number of establishments in operation in the country in 2017 totaled to 917,582. About 228,112 establishments (24.9%) of the total establishments comprise the establishment frame or are within the scope and coverage of the 2017 ASPBI.
Unit of Enumeration
The unit of enumeration for the 2017 ASPBI is the establishment. An 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.
Taxonomy 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 TE as of a specific date. 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 31 December 2017 was used for the 2017 ASPBI.
The 2017 ASPBI uses a 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 17 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)
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,...17 regions (geographic domains)
Xspj = value 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
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 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,...17 regions (geographic domains)
Xcpj = value of the jth establishment 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) is obtained by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,
where d denotes the industry domains and p refers to region
National level estimates of 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 factor (n/n') was multipled with the sampling weight (W) of each of the sampling unit. The sampling weight, 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)
The response rate for Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles establishments with TE of 20 and over was 89.03 percent (4,213 out of 4,732 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 170 establishments responded online.
Reports of the remaining non-reporting establishments were taken from financial statements from Securities and Exchange Commission (SEC) and other available resources. Reports of establishments which were found to be duplicate of another establishment’s report, out-of-scope, and out of business in 2017 were not included in the generation of statistical tables.
Limitation of Data
Only the formal sector was covered in the survey.
Concepts and Definitions of Terms
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.
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, Phil Health, Pag-ibig, etc.
E-commerce refers tothe 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.
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.
Establishment is an economic unit under a single ownership and control, i. e. under a single entity, engaged in one or predominantly one kind of economic activity at a single fixed location.
Expense refers to the 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.
Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.
Income or Revenue refers tocash received and receivables for goods/products andby-products sold and services rendered. Valuation is at producer prices (ex-establishment) net of discounts and allowances, including duties and taxes but excluding subsidies.
Inventories refer to the stock of goods owned by and under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation is at current replacement cost in purchaser prices. Replacement cost is the cost of an item in terms of its present price rather than its original cost.
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.
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.
Subsidies are special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry.
Total employment is the number of persons who worked in for the establishment as of 15 November 2017.
Value 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 income from service rendered, real estate sales less real estate sold, commissions and fees earned, income from renting and leasing services of real estate properties,income from non-industrial service done for others (less rent income from land), sales of goods (less cost of goods sold), grants and donations, other income,capital expenditures of fixed assets produced on own account and change in inventories. Intermediate input is 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.