Data quality, concepts and methodology: Concepts, variables and classifications
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Concepts
The retail trade sector comprises establishments primarily engaged in retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise.
The retailing process is the final step in the distribution of merchandise; retailers are therefore organized to sell merchandise in small quantities to the general public. This sector comprises two main types of retailers, that is, store and non-store retailers. The MRTS covers only store retailers. Their main characteristics are described below. Store retailers operate fixed point-of-sale locations, located and designed to attract a high volume of walk-in customers. In general, retail stores have extensive displays of merchandise and use mass-media advertising to attract customers. They typically sell merchandise to the general public for personal or household consumption, but some also serve business and institutional clients. These include establishments such as office supplies stores, computer and software stores, gasoline stations, building material dealers, plumbing supplies stores and electrical supplies stores.
In addition to selling merchandise, some types of store retailers are also engaged in the provision of after-sales services, such as repair and installation. For example, new automobile dealers, electronic and appliance stores and musical instrument and supplies stores often provide repair services, while floor covering stores and window treatment stores often provide installation services. As a general rule, establishments engaged in retailing merchandise and providing after sales services are classified in this sector.
Catalogue sales showrooms, gasoline service stations, and mobile home dealers are treated as store retailers.
Variables
Sales are defined as the sales of all goods purchased for resale, net of returns and discounts. This includes commission revenue and fees earned from selling goods and services on account of others, such as selling lottery tickets, bus tickets, and phone cards. It also includes parts and labour revenue from repair and maintenance; revenue from rental and leasing of goods and equipment; revenues from services, including food services; sales of goods manufactured as a secondary activity; and the proprietor’s withdrawals, at retail, of goods for personal use. Other revenue from rental of real estate, placement fees, operating subsidies, grants, royalties and franchise fees are excluded.
Trading Location is the physical location(s) in which business activity is conducted in each province and territory, and for which sales are credited or recognized in the financial records of the company. For retailers, this would normally be a store.
Sales in volume: The value of retail trade is measured in two ways; including the effects of price change on sales and net of the effects of price change. The first measure is referred to as retail trade in current dollars and the latter as retail trade in constant dollars. The method of calculating the current dollar estimate is to aggregate the weighted value of sales for all retail outlets. The method of calculating the constant dollar estimate is to first adjust the sales values to a base year, using the Consumer Price Index, and then sum up the resulting values.
Classification
The Monthly Retail Trade Survey is based on the definition of retail trade under the NAICS (North American Industry Classification System). NAICS is the agreed upon common framework for the production of comparable statistics by the statistical agencies of Canada , Mexico and the United States . The agreement defines the boundaries of twenty sectors. NAICS is based on a production-oriented, or supply based conceptual framework in that establishments are groups into industries according to similarity in production processes used to produce goods and services.
Estimates appear for 21 industries based on special aggregations of the 2012 North American Industry Classification System (NAICS) industries. The 21 industries are further aggregated to 11 sub-sectors.
Geographically, sales estimates are produced for Canada and each province and territory.
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