Majority of establishments were engaged in retail trade, except of motor vehicles and motorcycles, repair of personal and household goods
A total of 374,559 establishments engaged in wholesale and retail trade; sale, maintenance and repair of motor vehicles, motorcycles and repair of personal and household goods sector were reported in the 2000 Census of Philippine Business and Industry (CPBI). Of the total, 98.2 percent or 367, 715 establishments had an average total employment (ATE) of less than 20 and only 1.8 percent or 6,844 were large establishments with ATE of 20 and over. (Tables 1 to 3)
Retail trade, except of motor vehicles and motorcycles, repair of personal and household goods (PSIC G52) dominated the industry comprising 298,764 or about four fifths of the total establishments in the sector. The wholesale trade and commission trade, except of motor vehicles and motorcycles (PSIC G51) and sale, maintenance and repair of motor vehicles and motorcycles, retail sale of automotive fuel (PSIC G50) numbered 40,750 or 10.9 percent and 35,045 or 9.4 percent, respectively. Figure 1 shows the Distribution of All Wholesale and Retail Trade; Repair of Motor Vehicles, Motorcycles, and Personal and Household Goods Establishments by Industry Division.
Most establishments were located in the National Capital Region
National Capital Region (NCR) remained the center for trading in the country, accounting for almost one-fourth (23.4 %) or 87,778 establishments in 1999. The neighboring regions of Southern Tagalog (Region IV) and Central Luzon (Region III) followed with 68,282 establishments (18.2 %) and 41,947 (11.2 %), respectively. The least number of establishments was reported in Autonomous Region of Muslim Mindanao (ARMM) with only 3,268 or 0.9 percent. Figure 2 shows the Distribution of All Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles and Personal and Household Goods Establishments by Region.
Retail trade establishments employed the most workers
The sector generated jobs to 1,695,216 workers in 1999. Majority (1,236,823 or 73.0 percent) of them were paid employees, and 458,393 or 27.1 percent accounted for working owners and unpaid workers.
Roughly three fourths (1,209,040) of the sector?s labor force was engaged by the retail trade; repair of personal and household goods (PSIC G52). Remaining employment of 285,456 (16.8%) and 200,720 (11.8%) were employed in the wholesale trade and commission trade (PSIC G51) and the sale, maintenance and repair of motor vehicles and motorcycles, retail sale of automotive fuel (PSIC G50), respectively.
The National Capital Region (NCR) remained the biggest employer absorbing 549,483 or 32.4 percent of total workforce in the sector. On the other hand, Autonomous Region in Muslim Mindanao employed only 10,908 workers or 0.6 percent, the lowest among the regions. See Table 4 for Summary Statistics for All Wholesale and Retail Trade; and Repair of Motor Vehicles, Motorcycles and Personal and Household Goods Establishments by Region.
On the average, there were 5 employees per wholesale and retail trade establishment in the country in 1999. See Table R1.
Wholesale trade and commission trade workers received the highest average monthly compensation in 1999
Aggregate compensation paid by all wholesale and retail trade and repair services sector to its 1,236,823 employees amounted to P77.4 billion in 1999. This translates to an average monthly compensation of P5, 217 per paid employee.
Highest earners were those engaged by the wholesale trade and commission trade institutions, (PSIC G51), with an average monthly compensation of P7,524. In contrast, the employees of retail trade, repair of personal and household goods (PSIC G52) were the lowest paid in the sector with average monthly income of P4,546 per employee. Figure 3 shows the Average Monthly Compensation by Industry Division.
Labor payments in the National Capital Region (NCR) comprised P42.97 billion or 55.5 percent of the total compensation nationwide. Other regions, which expended over P3 billion for compensation include: Southern Tagalog with P8.54 billion or 11.0 %, Central Luzon, P5.01 billion or 6.8 %, Central Visayas, P4.67 billion or 6.0%, and Southern Mindanao, P3.40 billion or 4.4%.
NCR-based trade workers earned the highest average monthly income of P7,532. Those in the ARMM reported the lowest at P1,790 per employee.
Retail stores, repair services highest earner and biggest spender
Total revenue earned in 1999 by all wholesale and retail trade and repair services sector amounted to P1,614.03 billion. Retail trade, repair of personal and household goods (PSIC G52) remained the top grosser with P818.58 billion gross receipts or more than half (50.7 percent) of the sector?s total revenue. Wholesale trade and commission trade, (PSIC G51) followed with P565.39 billion. At the regional level, NCR-based establishments posted an estimated P848.78 billion, making it the largest revenue earner among the regions. ARMM earned the lowest at P1.54 billion.
The cost for operating the wholesale and retail trade; and repair of motor vehicles, motorcycles and personal and household goods establishments excluding compensation paid to employees amounted to P1,315.9 billion in 1999, the highest among all industry divisions in the sector.
The industry reporting the highest expenditures was retail trade (PSIC G52). Thus, industries contributing the biggest revenue also registered the highest share in expenditure.
The revenue per peso cost of the sector in 1999 was 1.23. Retail trade, repair of personal and household goods PSIC (G52) surpassed the national average at 1.25. Figure 4 shows the Revenue per Peso Cost Ratio by Industry Group.
Wholesale and retail trade establishments based in NCR were the most costly to operate with P700.3 billion or an average of P87.7 million per establishment while the least expensive were in ARMM at P1.09 billion or P3.2 million as cost of operation per establishment. Conversely, this translates to a revenue-cost ratio of 1.11, the lowest rate of return per peso spent and 1.44 the highest rate of return per peso spent, respectively. Figure 5 shows the Revenue and Cost by Industry Division.
Revenue per employment was high in wholesale and commission trade
All wholesale and commission trade establishments (G51) surpassed the one-million revenue per employment and reached an average level at P1.9 million. However, among the industry groups, sale of motor vehicles (G501) gave the highest revenue output per employment at P4.0 million, followed by agricultural intermediate products, waste and scraps (G514) with P3.7 million and retail sale of automotive fuel (G505) with P2.6 million. The lowest revenue per employment was in maintenance and repair of motor vehicles (G502) at P126.1 thousand only. See Figure 6 for Top Industry Group on Revenue per Employment for All Wholesale and Retail Trade; Repair of Motor Vehicles, Motorcycles and Personal and Household Goods Establishments.
Total Gross Margin amounted to over P200 billion
For establishments with average employment 20 and over, the estimated gross margin in 1999 was P234 billion. The top grosser was wholesale and commission trade (PSIC G51) with P113.57 billion, seconded by retail trade (PSIC G52) at P102.3. Sale, maintenance and repair of motor vehicles and motorcycles, retail sale of automotive fuel (PSIC G50) consisted of only P18.6 billion.
Value Added Estimate was almost P200 billion
Value added followed the trend of trade margin for establishment with ATE 20 and over. It was estimated at P192.1 billion.
Total Gross Addition to Fixed Assets amounted to P22.18 billion
In 1999, total gross addition to fixed assets of the wholesale and retail trade and repair services sector reached P 22.19 billion.
The dominant industry, retail trade PSIC (G52) recorded the highest, with an estimated amount of 11.04 billion or almost one-half (49.8 percent) of the total.
More than half of the total change in inventories was in retail trade PSIC G52
The sector?s total change in inventories amounted to P32.34 billion.
Retail trade (PSIC G52) registered the biggest share comprising more than half or 56.3 percent of the total. Leading industry group under this sector was other retail trade of new goods in specialized store (PSIC G523) with P11.58 billion change in inventories or 35.8 percent of the total.
Government granted P704.76 million subsidies in 1999.
Total amount of subsidies received by all wholesale and retail trade and repair services establishments from the government to aid or develop an industry reached P704.76 million.
By industry division, retail trade PSIC G52 and wholesale and commission trade PSIC G51 got the biggest and lowest share of subsidies which amounted to P301.21 million and P191.01 million respectively. Figure 7 shows the subsidies received by industry division.
Scope and Coverage
The 2000 Census of Philippine Business and Industry (CPBI) aimed to collect benchmark information on economic activities of establishments in the entire country for the year 1999.
One of the fourteen sectors covered in the census is the 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 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 20 and over were covered on a 100 percent basis and those with ATE of less than 20 were selected using probability proportional to size sampling.
The 2000 CPBI covered 14,994 wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods establishments with a response rate of 86.62%. Adjustments for non-response were made through imputations.
Concepts and Definition of Terms
Establishment - An economic unit under single ownership or control, i.e., under a single legal entity, engaged in one predominantly one kind of economic activity at a single fixed location, and having permanency of assets in its premises during the operation. It is also defined as the unit that is engaged in the production of the most homogenous group of goods and services, usually at one location, but sometimes over a wider area, for which separate records are available that can provide data concerning the production of these goods and services and the materials, labor and physical resources used in this production.
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.
Average total employment (ATE) - is the sum of the number of persons who worked in or for the establishment for all months of the year divided by 12 regardless of the number of months the establishment was in operation in 1999.
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 employee?s 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 additions to fixed assets - is the sum of cost of new and used fixed assets acquired during the year, cost of alteration and improvements done by others and cost of fixed assets produced by the establishment 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 - for fixed assets include cost of acquisition of new and used fixed assets; fixed assets produced by the establishment for its own use; major alterations, additions and improvements to fixed assets, whether done by others or done on own account.
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 purchaser's price at the indicated dates. Replacement cost is the cost of an item in terms of its present price rather than its original price.
Source: National Statistics Office