Retail sale of other goods in specialized store accounts for majority of establishments
Final results of the 2012 Census of Philippine Business and Industry showed that a total of 95,850 establishments were engaged in Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles.
Retail sale of other goods in specialized stores industry had the highest number of establishmentswhich accounted for nearly one-third (30.3%) or 29,008 of the total. This was followed by establishments engaged in retail sale of other household equipment in specialized stores with 12,786 or 13.3 percent. Establishments engaged in retail sale of food, beverages and tobacco in specialized stores ranked third with 8,755 or 9.1 percent. ( See Figure 1).
At the regional level, National Capital Region (NCR) the hub of business and industry, had the most number of establishments with 29,049 (30.3%). CALABARZON and Central Luzon placed far second and third with 12,627 (13.2%) and 8,896 (9.3%), respectively. ARMM had the least number with 225 establishments. (See Table 2).
Retail sale of other goods in specialized stores hire the highest number of workers
In 2012, the estimated employment of the sector was 989,499 workers of which 959,218 (96.9%) were paid workers and the rest were working owners and unpaid workers.
The top three retail establishments provided employment to almost half (49.6%) or 490,780 workers to the total labor force of the sector. These were the following:
- Retail sale of other goods in specialized stores with 183,786 (18.6%)
- Retail sale in non-specialized stores with 182, 350 (18.4%)
- Retail sale of other household equipment in specialized stores with 124,644 (12.6%)
Among regions, NCR generated the largest share to total employment with 373,866 workers or 37.8 percent, followed by CALABARZON with 108,134 employees or 10.9 percent. Central Visayas came in third with 81,580 workers or 8.2 percent. On the other hand, ARMM recorded the least with 1,950 workers.
The average number of workers per establishment of the sector stood at 10. Retail sale in non-specialized stores recorded the highest at 24, followed by wholesale of food, beverages and tobacco and sale of motor vehicles at 23. Wholesale of household goods came in third at 21.
Total compensation disbursements reach PHP130.1 billion
Total compensation paid by the sector to its employees reached to PHP130.1 billion in 2012, equivalent to an average annual compensationof PHP135.7 thousand per employee.
By industry group, retail sale of other goods in specialized stores paid the highest compensation of PHP25.2 billion or 19.4 percent of the total. Retail sale in non-specialized stores came in second with PHP20.5 billion or 15.8 percent. Wholesale of household goods ranked third amounting to PHP15.3 billion or 11.8 percent. Non-specialized wholesale trade recorded the lowest payments of PHP137.4 million (0.1%).
Across regions, employers in NCR spent the biggest share in total compensation amounting to PHP71.6 billion (55.0%). CALABARZON placed second providing an amount of PHP12.0 billion (9.3%) while businesses in Central Visayas region disbursed PHP8.4billion (6.4%). Workers in ARMM received the lowest compensation of PHP86.7million.
Workers of wholesale of machinery, equipment and supplies are highest-paid employees in 2012
Workers in wholesale of machinery, equipment and supplies received the highest average annual compensationof PHP225.3 thousand or an average monthly compensation of PHP18,773. On the other hand, workers employed in maintenance and repair of motor vehicles received the lowest payment of PHP81.4 thousand or monthly compensation of PHP6,784. (See Figure3).
Regionwise, NCR employers provided the highest average annual compensation to its employees in the amount of PHP193.4 thousand while ARMM employers provided the lowest payments of PHP51.0 thousand.
Retail sale in non-specialized stores contribute the largest share in income and expense
Total income generated by the sector reached to PHP3.8 trillion in 2012. Retail sale in non-specialized stores earned the highest income of PHP642.5 billion (17.0%), followed by wholesale of household goods withPHP487.4 billion (12.9%). Retail sale of other goods in specialized stores ranked third with PHP456.5 billion (12.1%).
Total expense disbursed in 2012 amounted to PHP3.6trillion. Being the major contributor in income, retail sale in non-specialized stores had also the largest proportion in expense with PHP621.1 billion (17.2%). This was followed by wholesale of household goods and retail sale of other goods in specialized stores with PHP444.1 billion (12.3%) and PHP440.9 billion (12.2%) respectively. On the other hand, retail trade not in stores, stalls or markets incurred the lowest expense of PHP3.8 billion. Figure 4 below shows the top five industry groups in terms of income and expense.
By region, NCR establishments earned nearly half (49.7%) of the total income of the sector amounting to PHP1.9 trillion. Income for other highest regions were the following: CALABARZON with PHP436.1 billion (11.6%), Central Luzon with PHP321.3 billion (8.5%) and Central Visayas with PHP238.0 billion (6.3%).
Also across regions, NCR incurred highest expense amounting to PHP1.8 trillion (49.8%). Next other regions with highest expense reported were as follows: CALABARZON with PH411.2 billion (11.4%), Central Luzon with PHP311.6 billion (8.6%) and Central Visayas with PHP225.1 billion (6.2%).
Income-expense ratio stood at 1.05
The income per peso expense of the sector in 2012 stood at 1.05, which means that for every peso spent by the establishment corresponding income of PHP1.05, was generated. Among industries, wholesale on a fee or contract basisexhibited the highest and surpassed the national average with 1.14 income per peso expense. This was followed by industry engaged in wholesale of household goods with 1.10 ratio. Retail trade not in stores, stalls or markets and maintenance repair of motor vehicles closely came in and placed third with 1.09 income-expense ratio. On the other hand, wholesale of food, beverages and tobacco recorded the lowest ratio of 1.02.
At the regional level, six regions posted an income-expense ratio of 1.06 and these were the following: CAR, Cagayan Valley, CALABARZON, Central Visayas, Zamboanga Peninsula and ARMM.
Value added amounts to PHP364.1 billion
Value added generated by Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles sector was estimated at PHP364.1 billion in 2012.
Top three industries that contributed nearly half (45.3%) to the total value added of the sector were the following: wholesale of household goods with PHP65.2 billion (17.9%), retail sale in non-specialized stores with PHP51.5 billion (14.1%) and retail sale of other goods in specialized stores with PHP48.3 billion (13.3%). Likewise, at the regional level, NCR contributed the largest value added of PHP192.6 billion (52.9%).
Wholesale of household goods industry has the highest labor productivity
Value added per employee, a measure of labor productivity of the sector was estimated at PHP368.0 thousand. Wholesale of household goods industry recorded the highest with PHP833.2 thousand while maintenance and repair of motor vehicles generated the lowest with PHP126.4 thousand. Workers from NCR were the most productive among regions with PHP515.2 thousand.
Gross margin reaches PHP594.8 billion
Gross margin or trade margin, the gross output of the section in 2012 reached PHP594.8 billion. The top three industries that contributed nearly half (49.8%) of the total gross margin of the section were the following:
- Wholesale of households with PHP106.3 billion, (17.9%)
- Retail sale in non-specialized stores with PHP96.3 billion, (16.2%)
- Retail sale of other goods in specialized stores with PHP93.6 billion, (15.7%)
Gross additions to fixed assets accumulate to PHP20.7 billion
Gross addition to fixed assets (capital expenditures less sale of fixed assets) acquired by the sector reached PHP20.7 billion in 2012. Retail sale in non-specialized stores acquired the biggest gross addition to fixed assets with PHP5.1 billion (24.4%) while retail trade not in stores, stalls or markets had the least with PHP7.5 million. Regionwise, NCR recorded the highest gross additions amounting to PHP12.0 billion and ARMM had the least at PHP 11.7 million.
Total change in inventories amount to PHP70.6 billion
Total change in inventories defined as ending less beginning inventory of the sector amounted to PHP70.6 billion in 2012. Wholesale of food, beverages and tobacco had the highest change in inventory comprising more than one-fourth (25.3%) or PHP17.8 billion of the total. Retail sale in non-specialized stores followed next with PHP8.7 billion (12.3%). Retail sale of other goods in specialized stores came in third with PHP8.2billion (11.6%).
Among regions, NCR had the highest share in change in inventories at PHP42.2 billion (59.8%) while ARMM garnered the lowest of PHP57.4 million (0.1%).
Government grants PHP8.0 billion subsidies
Total subsidies received from the government amounted to PHP8.0 billion in 2012.
Wholesale of food, beverages and tobacco industrylocated in NCR received the highest subsidies of PHP 8.0 billion from the government.
Sales from E-commerce reach PHP2.0 billion
Sales from e-commerce transactions of the sector reached PHP2.0 billion.Three industries of the sector posted the highest e-commerce transactions and these were the following:
- Retail sale of other household equipment in specialized stores with PHP741.2 million, (37.1%)
- Wholesaleof machinery, equipment and supplies with PHP649.8 million, (32.5%)
- Wholesale of household goods with PHP575.3 million, (28.8%)
Across regions, NCR recorded the biggest share of e-commerce transaction with PHP1.2 billion or 61.6 percent, followed by Central Visayas with PHP741.2 million or 37.1 percent. Western Visayas came in third with PHP26.6 million or 1.3 percent.
This Special Release presents the final results of the 2012 Census of Philippine Business and Industry (CPBI) for Wholesale and Retail Trade; Repair of MotorVehicles and Motorcycles sector for All employment sizes.
The 2012 CPBI is the forerunner of the 2006 CPBI and one of the designated statistical activities of the former National Statistics Office (NSO) now Philippine Statistics Authority (PSA). Data collected from the census will provide information on the levels, structure, performance and trends of economic activities of the formal sector of the economy for the reference period 2012. It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.
To provide establishment respondents ease in accomplishing the 2012 CPBI questionnaires, the income and expense account in the Financial Statement of establishment was adopted in the design of 2012 CPBI sectoralquestionnaires. Income and revenue have the same concept in recording financial transaction of establishments while expense is cost incurred on a consumed basis.
Data collection was intensified through the use of web-based or online accomplishment of questionnaire through the NSO website and downloading of e-questionnaire and submission thru e-mail.
The conduct of the CPBI is governed by authority of the following legislative acts and presidential directives:
Commonwealth Act No. 591 An Act to Create the Bureau of the Census and Statistics to consolidate statistical activities of the government therein which was approved on August 19, 1940. This empowers the Bureau, among other things, to prepare for and undertake all censuses of population, agriculture, industry and commerce.
Presidential Decree No. 418 dated March 20, 1974 reconstituted the Bureau of the Census and Statistics as a new agency to be known as the National Census and Statistics Office (NCSO), under the administrative supervision of the National Economic Development Authority (NEDA).
Executive Order No. 121 Reorganization Act of the Philippine Statistical System, dated August 4, 1987 renamed the National Census and Statistics Office (NCSO) to National Statistics Office which shall be the major statistical agency responsible for generating general purpose statistics and undertaking such censuses and surveys.
Executive Order 352 Designation of Statistical Activities that will generate critical data for decision-making by the Government and the Private Sector, dated July 1, 1996.
Executive Order 5 Strengthening the National Statistics Office, dated July 29, 1998.
Scope and coverage
The 2012 CPBI was a nationwide undertaking confined to the formal sector of the economy and as such excluded the informal sector. The following comprise the formal sector:
1. Corporations and partnerships
2. Cooperatives and foundations
3. Single establishment with employment of 10 or more
4. Single proprietorship with branches
The scope of the ASPBI was confined to “formal sector” only, which consists of the following:.
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 Classificatin (PSIC).
The initial count of the 2012 List of Establishments (LE), the frame used to draw the sample establishments for the 2012 CPBI, registered a total of 945,000 establishments in operation nationwide in 2012. Out of this number, 72 percent or 680,400 establishments belong to the informal sector and only 28 percent or 262,800 establishments made up of the formal sector.
Listed below are the 18 economic sectors within the scope of the 2012 CPBI classified under the 2009 Philippine Standard Industrial Classification (PSIC).
Agriculture, Forestry and Fishing (A)
Mining and Quarrying (B)
Electricity, Gas, Steam and Air Conditioning Supply (D)
Water Supply; Sewerage, Waste Management and Remediation Activities (E)
Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (G)
Transport 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)
Private Education (P)
Human Health and Social Work Activities (Q)
Arts Entertainment, and Recreation (R)
Other Service Activities (S)
Unit of Enumeration
The unit of enumeration for the 2012 CPBI was the establishment. An establishment is defined as an economic unit, which engages, under a single ownership or control, in one or predominantly one kind of activity at a single fixed physical location.
Classification of Establishments
An establishment is categorized by its economic organization (EO), legal organization (LO), industrial classification, employment size, and geographic location.
Economic organization (EO). This refers to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:
Legal organization (LO) This refers to the legal form of the economic entity provides the legal basis for ownership of the establishment. The following are the types of legal organization:
Industrial Classification. The Industrial Classification of an economic unit is 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 (SZ) of the Unit of Enumeration. The size of an economic unit 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/enterprise. 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.
The following are the size codes and corresponding total employment used in the 2012 CPBI:
|0||1 - 4||5||100 - 199|
|1||5 - 9||6||200 - 499|
|2||10 - 19||7||500 - 999|
|3||20 - 49||8||1000 - 1999|
|4||50 - 99||9||2000 & Over|
|TE Code||Total Employment||TE Code||Total Employment|
Geographic Classification. Establishments are also classified 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 latest PSGC as of September 30, 2012 was used for the 2012 CPBI.
Selection of sample establishment for the 2012 CPBI was done using stratified systematic sampling with 3-digit or 5-digit PSIC serving as industry strata and employment size as the second stratification variable.
Field operations of the 2012 CPBI were scheduled from April to July 2013. As of July 2013, only 61.2 percent of the total sample questionnaires were received at the Central Office. About 90.2 percent collection of questionnaires was achieved only on November 2013.
Total response rate for Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles sector was 94.0 percent (14,876 out of 15,821 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 119 establishments responded online and eight establishment submitted through e-mail.
CONCEPTS AND DEFINITIONS OF TERMS
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 for the establishment as of November 15, 2012.
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.
Compensation includes 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.
Income or Revenue refers to cash received and receivables for goods/products and by-products sold and services rendered.
Cost refers to all expenses incurred during the year whether paid or payable. Valuation is at purchaser prices 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.
Expenses refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis.
Gross Margin refer to the difference between the value 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.
Value added is gross output less intermediate input. Gross output for Wholesale and Retail Trade;Repair of Motor Vehicles and Motorcycles is the sum of the total revenue (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 cost items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; cost of industrial services done by others; cost of non-industrial services done by others; goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; payouts and other cost. .
Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.
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.
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.
Subsidies are all 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 assets are resources including land owned and/or controlled by the establishment as a result of past transactions and events from which future economic benefits are expected to flow to the establishments.
E-Commerce refers to the selling of products or services over electronic systems such as the Internet Protocol-based networks and other computer networks, Electronic Data Interchange (EDI) network, or other on-line system.
Source: Philippine Statistics Authority - National Statistics Office