Canadian Industry Statistics (CIS)
Retail Revenues and Expenses
Retail Trade (NAICS 44-45)
Under this topic you will find information on revenues, expenses and profits
in Canada’s Retail Trade (NAICS 44-45) sector. This
information can be used as a benchmark against the performance of your business
and can help you to identify opportunities to gain efficiencies.
This section examines the operating revenues generated by the Retail Trade
sector. Operating revenues are revenues that are derived from the regular
operations of a business. Revenues from non-operating sources such as interest
and dividends are excluded.
The primary source of operating revenues for the vast majority of retail
businesses is sales. Other sources of operating revenues can include
commissions, manufacturing sales, labour revenues, revenues from rental and
leasing, etc.
Sales represented 97.9% of total operating revenues in 2010,
while other sources of revenues accounted for 2.1%. In
2001, sales accounted for 97.3% while other sources of revenues
represented 2.7%.
Sales and Operating Revenues: 2001-2010
Retail Trade (NAICS 44-45)
Operating revenues reached $453.0 billion in 2010,
up from $436.6 billion in 2009. This was
an increase of 3.7%. Since 2001, operating revenues have
increased 3.8% per year on average.
Revenues by Type: 2001-2010
Retail Trade (NAICS 44-45)
Revenue Type |
Value in $ billions |
% of total 2010 |
CAGR* 2001-2010 |
% Change 2009-2010 |
2001 |
2010 |
|
|
Sales |
314.6 |
443.2 |
97.9% |
3.9% |
4.1% |
Other
Operating Revenues |
8.6 |
9.7 |
2.1% |
0.0% |
-11.1% |
| |
Total
Operating Revenues |
323.2 |
453.0 |
100% |
3.8% |
3.7% |
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This section examines expenses incurred by the Retail Trade sector. The
largest expense category for most retail establishments is the cost of goods
sold (the purchase of inventory to be sold).
Operating expenses are charges that are produced as a result of the regular
operations of a business. Among the operating expenses, total labour
remuneration is typically the largest category. Other sources of operating
expenses can include rental and leasing expenses, advertising, depreciation,
management fees, etc. Expenses from non-operating sources such as interest
expenses are excluded.
In 2010, cost of goods sold represented 76.6% of total
expenses. Total labour remuneration accounted for 11.7% and other
operating expenses 11.7%. In 2001, cost of goods sold accounted
for 78.7%, total labour remuneration for 10.7% and
other operating expenses 10.6% of total operating expenses.
Total Expenses, Cost of Goods Sold and Labour Expenses: 2001-2010
Retail Trade (NAICS 44-45)
Total expenses (cost of goods sold and operating expenses combined) reached
$429.7 billion in 2010, up from
$303.1 billion in 2001. This represented an increase
of 4.0% per year on average. Between 2009 and 2010, total
expenses increased 3.5%.
Expenses by Type: 2001-2010
Retail Trade (NAICS 44-45)
Expense Type |
Value in $ billions |
% of Total
2010 |
CAGR* 2001-2010 |
% Change 2009-2010 |
2001 |
2010 |
|
|
Cost
of Goods Sold |
238.6 |
329.1 |
76.6% |
3.6% |
3.9% |
Total
Labour Remuneration |
32.5 |
50.2 |
11.7% |
4.9% |
2.0% |
Other
Operating Expenses |
32.0 |
50.4 |
11.7% |
5.2% |
2.2% |
| |
Total
Expenses |
303.1 |
429.7 |
100% |
4.0% |
3.5% |
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An estimate of the pre-tax profitability of the Retail Trade sector can be
obtained by subtracting total expenses from total operating revenues. While
this calculation will not match balance sheet information exactly, it does
provide a reasonable estimate.
Net Revenues: 2001-2010
Retail Trade (NAICS 44-45)
Category |
Value in $ billions |
CAGR* 2001-2010 |
% Change 2009-2010 |
2001 |
2010 |
|
|
Total
Operating Revenues |
323.2 |
453.0 |
3.8% |
3.7% |
Total
Expenses |
303.1 |
429.7 |
4.0% |
3.5% |
| |
Net
Revenues |
20.0 |
23.3 |
1.7% |
9.3% |
In 2010, the Retail Trade sector generated $23.3 billion in
profits, up from $20.0 billion in
2001. This represented an average annual increase of
1.7%, with a 9.3% increase observed
between 2009 and 2010.
Net Revenues: 2001-2010
Retail Trade (NAICS 44-45)
The profit margin is one way to measure profitability. It is a ratio of net
revenues to total revenues (i.e. net revenues as a percentage of total
revenues). Profit margins can vary widely between industries.
In 2010 the pre-tax profit margin in the Retail Trade sector was
5.1%, while in 2001 it was 6.2%.
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A distinction can be made between chain store retailers and non chain store
retailers. Retail store chains are defined as organizations operating four or
more outlets in the same industry class under the same legal name. Non chain
retail stores include independent and franchise establishments only.
In 2010, chain store revenues represented 47.9% of total
revenues generated in the sector, with 52.1% generated by non
chain stores. In 2001, 41.1% of revenues in the sector were
generated by chain stores and 58.9% by non chain stores.
Chain Store vs. Non Chain Store Revenues: 2001-2010
Retail Trade (NAICS 44-45)
Chain store revenues were $217.0 billion in 2010,
up from $208.2 billion in 2009, which was
an increase of 4.2%. Since 2001, revenues from chain
stores have increased 5.6% per year on average.
Chain store expenses were $199.8 billion in 2010,
up from $192.5 billion in 2009. This
represented an increase of 3.8%. Expenses have
increased 5.9% per year on average since 2001.
Net revenues for Chain stores were $17.1 billion in 2010, a
8.8% increase over 2009 net revenues
($15.8 billion). Since 2001, net revenues have
increased 2.7% per year on average.
The pre-tax profit margin for chain stores was 7.9% in 2010,
and in 2001 it was 10.1%.
Chain Stores vs. Non Chain Stores: 2010
Retail Trade (NAICS 44-45)
Store
Type |
Revenues in
$ billions |
Expenses in
$ billions |
Net Revenues
in $ billions |
Profit
Margin (%) |
|
|
Chain
Stores |
217.0 |
199.8 |
17.1 |
7.9% |
Non
Chain Stores |
236.0 |
229.8 |
6.1 |
2.6% |
| |
Total
Operating Revenues |
453.0 |
429.7 |
23.3 |
5.1% |
Revenues generated by non chain stores was $236.0 billion
in 2010, compared to $228.4 billion in 2009. This
represented an increase of 3.3%. Since 2001, non chain
store revenues have averaged a 2.4% increase per
year.
Non chain store expenses were $229.8 billion in 2010,
up from from $222.9 billion in 2009. This
represented an increase of 3.1%. Expenses have
increased 2.5% per year on average since 2001.
Net revenues for non chain stores were $6.1 billion in
2010, a 10.8% increase over 2009 net revenues
($5.5 billion). Since 2001, net revenues have
decreased 0.7% per year on average.
The pre-tax profit margin for non chain stores was 2.6% in
2010, and in 2001 it was 3.4%.
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The data under this topic come from the Annual
Retail Trade Survey, which is conducted by Statistics Canada. Data are
available for the years 2001-2010.
For a number of industries, certain variables are not available or are
suppressed by Statistics Canada in order to protect business confidentiality.
In these cases, values of 0.0 will appear.