The industry section on Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (Section G) includes 19 industry groups covering the activities on selling by retail and wholesale of any type of goods and the rendering service incidental to the sale of these goods. Activities related to the sale and repair of motor vehicles and motorcycles are also included in this section.

The following highlights of the results of the 2018 Census of Philippine Business and Industry (CPBI) for this section presented in Figure 1 are: number of establishments engaged in this industry section, total employment created, total revenue generated, total expenses incurred, and total value added generated. (Figure1)

Retail sale of other goods in specialized stores lead in terms of number of establishments in 2018

A total of 137,674 establishments were engaged in wholesale and retail trade; repair of motor vehicles and motorcycles with a growth rate of 43.6 percent from the 95,850 establishments recorded in 2012. (Table A and Figure 1)

Retail sale of other goods in specialized stores led among industry groups in terms of number of establishments with 39,585 (28.8% share). Retail sale of other household equipment in specialized stores ranked second with 17,389 (12.6%), followed by retail sale in non-specialized stores with 13,478 (9.8%). Non-specialized wholesale trade had the least number of establishments with 93 or 0.1 percent share to the total. (Tables 1 and 1A, and Figure 2)

National Capital Region (NCR) had the highest number of establishments among regions

NCR recorded the highest number of establishments of 21,366 (15.5% share). This was followed by CALABARZON and Central Visayas with 12,537 (9.1%) and 11,642 (8.5%) establishments, respectively. Autonomous Region in Muslim Mindanao (ARMM) recorded the least number of establishments at 1,984 (1.4%). (Tables 3 and 3A)

Retail sale of other goods in specialized stores employs the highest number of workers among industry groups

The sector employed a total of 1,410,967 persons in 2018 with a growth rate of 42.6% from the 989,499 persons employed in 2012. (Table A)

An average of 11 employees per establishment was recorded in the sector in 2018. Across industry groups, sale of motor vehicles recorded the highest ratio of 28 employees per establishment. (Table 2)

Among industry groups, retail sale of other goods in specialized stores hired the highest number of employees with 276,442 (19.6% share). Retail sale in non-specialized stores industry group ranked second with 245,299 employees (17.4%), followed by retail sale of other household equipment in specialized stores with 174,848 (12.4%). On the other hand, non-specialized wholesale trade posted the lowest number of employees with 1,539 (0.1%). (Tables 1 and 1A, and Figure 3)

NCR tops other regions in terms of employment

NCR topped other regions in terms of employment with 382,716 employees or 27.1 percent of the total employment, followed by CALABARZON with 146,320 (10.4% share), and Central Visayas with 124,787 (8.8%). (Table 3A)

Retail sale in non-specialized stores engages more workers under sub-contract agreement

In 2018, a total of 107,658 workers under sub-contract agreement were engaged in the sector. Most of these workers were in establishments engaged in retail sale in non-specialized stores with 33,675 workers. This was followed by retail sale of other household equipment in specialized stores with 15,361 subcon workers. (Table 1)

Among regions, establishments in NCR employed the highest number of workers under sub-contract agreement with 42,290 workers, followed by Central Luzon and CALABARZON with 17,196 and 13,180 workers, respectively. (Table 3)

Retail sale of other goods in specialized stores incurs the highest compensation among industry groups

The total compensation spent by the establishments in the wholesale and retail trade; repair of motor vehicles and motorcycles industry section was posted at PhP 290.7 billion. This translates to an average annual compensation at PhP 211.8 thousand per paid employee. (Table 1)

Among industry groups, the retail sale of other goods in specialized stores incurred the highest compensation with PhP 65.8 billion. Retail sale in non-specialized stores followed with PhP 38.5 billion. (Table 1 and Figure 4)

At the regional level, NCR recorded the highest total compensation spent with PhP 121.8 billion. This was followed by CALABARZON with PhP 35.6 billion. (Table 3)

In terms of average annual compensation per paid employee, employees in the wholesale of machinery, equipment, and supplies industry group received the highest annual compensation with PhP 340.9 thousand. This was followed by wholesale of household goods and sale, maintenance and repair of motorcycles and related parts and accessories with PhP 300.5 thousand and PhP 265.1 thousand, respectively. (Table 1 and Figure 4)

Retail sale of other goods in specialized stores contributes the biggest share in total revenue

The sector generated a total revenue of PhP 8.6 trillion in 2018. Among industry groups, retail sale of other goods in specialized stores had the biggest share in terms of revenue with PhP 1.4 trillion (16.5% share). This was closely followed by retail sale in non-specialized stores with about PhP 1.4 trillion (15.8%). (Table 1A and Figure 5)

Total expense amounts to PhP 8.0 trillion

The total expense incurred by the industry amounted to PhP 8.0 trillion. Being the top revenue contributor, the retail sale in non-specialized stores industry group also had the biggest share in the total expense with PhP1.29 trillion (16.1% share), followed by retail sale of other goods in specialized stores with about PhP1.25 trillion (15.7%). (Table 1A and Figure 5)

NCR accounts the biggest share in total revenue and total expense among regions

NCR posted the biggest share in total revenue with PhP 3.1 trillion (36.2%) and in total expense with PhP 2.9 trillion (36.4%). CALABARZON followed with PhP 1.2 trillion or 14.6 percent share to the total revenue and PhP 1.2 trillion or 15.1 percent share to the total expense. Autonomous Region in Muslim Mindanao recorded the least revenue and expense with PhP 8.9 billion (0.1%) and PhP 5.9 billion (0.1%), respectively. (Tables 3 and 3A)

Revenue per expense ratio posts at 1.07

The revenue per expense ratio for wholesale and retail trade; repair of motor vehicles and motorcycle was computed at 1.07. This indicates that for every peso spent, a corresponding revenue of PhP 1.07 was generated.

Out of 19 industry groups, seven of them exceeded the revenue per expense ratio at the national level (1.07). These are wholesale on a fee or contract basis (1.21), maintenance and repair of motor vehicles (1.20), retail sale of other goods in specialized store (1.12), other specialized wholesale (1.10), wholesale of agricultural raw materials and live animals (1.09), wholesale of household goods, and retail sale of cultural and recreation goods in specialized stores both with 1.08. (Table 2)

Retail sale of other goods in specialized stores contributes the biggest share to total value added

Value added contributed by the industry was estimated at PhP 999.0 billion. Among industry groups, retail sale of other goods in specialized stores shared the biggest portion to total value added with PhP 244.6 billion (24.5% share), followed by retail sale in non-specialized stores with PhP 128.5 billion (12.9%). (Tables 1 and 1A, and Figure 6)

NCR shares the biggest portion to the total value added

Among regions, NCR contributed the biggest amount to the total value added of the industry with PhP 380.9 billion or 38.1 percent share. This is followed by Northern Mindanao with PhP 118.6 billion (11.9%) and CALABARZON with PhP 92.6 billion (9.3%). (Tables 3 and 3A)

Gross margin amounts to PhP 1.5 trillion in 2018

Gross margin is a company’s net sales revenue less cost of goods sold. The industry recorded a gross margin of PhP 1.5 trillion. The combined gross margin of the top three industry groups accounted half (50.2%) of the total gross margin. These were retail sale of other goods in specialized stores with PhP 352.2 billion, retail sale in non-specialized stores PhP 240.2 billion, and wholesale of household goods with PhP 158.6 billion. (Table 1)

Among regions, the top three regions with higher gross margin are NCR with PhP 614.7 billion, CALABARZON (PhP 153.2 billion), and Northern Mindanao with PhP 142.8 billion. (Table 1)

Sales from e-commerce transaction reaches PhP 22.5 billion

Wholesale and retail trade; repair of motor vehicles and motorcycles industry recorded a total of PhP 22.5 billion sales from e-commerce transaction. The top three industry with sales from e-commerce were retail sale of other goods in specialized stores (PhP 15.2 billion), wholesale of household goods (PhP 3.3 billion), and retail sale of other household equipment in specialized stores (PhP 1.9 billion).

DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General